Olympio Metals Sells Mulwarrie Project, Sets Sights on Canada

2 min read | December 03, 2024 06:13 PM PST | By Team Kalkine Media

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Olympio Metals Sells Mulwarrie Project, Sets Sights on Canada — Image source: Parilov, Shutterstock

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Highlights

Mulwarrie Project sold for $1.4 million as Olympio shifts focus to Quebec, Canada.

Deferred $1M payment tied to gold resource certification by Labyrinth Resources.

Dufay Project in Quebec targeted for January drilling, exploring gold and copper potential.

Olympio Metals (ASX:OLY) has finalized the sale of its Western Australia-based Mulwarrie Project to Labyrinth Resources for $1.4 million, signaling a strategic pivot to gold and copper exploration in Canada.

The sale, initially announced in November, includes a mix of cash and shares. Labyrinth has paid a $50,000 option fee, $100,000 in cash, and $225,000 in Labyrinth shares. An additional $1 million will be paid to Olympio upon confirmation of a JORC-compliant Mineral Resource Estimate (MRE) exceeding 250,000 ounces of gold at a minimum grade of 1.4 grams per tonne (g/t).

The Mulwarrie Project, located north of Kalgoorlie in the Norseman-Wiluna Greenstone Belt, spans 295 square kilometers across 10 tenements. While Olympio has pursued gold exploration in the area, the company is now refocusing its efforts on its newly acquired Dufay Project in Quebec, Canada.

The Dufay Project is an untested prospect for gold and copper, with rock chip samples from the site reportedly grading as high as 7% copper. However, no drilling has occurred at Dufay since the 1980s, and Olympio plans to commence drilling in January 2024. The company has emphasized the site's proximity to other active gold operations, bolstering its exploration potential.

Olympio’s pivot is notable for its speed, given its acquisition of Dufay was only announced in November. The $3 million market cap company aims to capitalize on the site's untapped potential, but questions remain about the funding required to sustain its ambitious plans. Observers expect that additional capital raises may be on the horizon.

Labyrinth Resources, meanwhile, gains a promising gold asset in Mulwarrie, with the opportunity to realize further value upon achieving the MRE milestone.

Olympio last traded at 4 cents per share, with investors closely monitoring the company’s progress in its new Canadian venture.

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