No significant exploration done at the high-grade Falun mine since it closed in 1992 amid low commodity prices
Alicanto to acquire Falun copper-gold-zinc mine. (Credit: Dominik Vanyi on Unsplash)
Alicanto Minerals Ltd (Alicanto or the Company) (ASX: AQI) is pleased to announce that it has entered into a binding agreement to acquire the historical Falun mine and surrounding tenements.
Alicanto Managing Director Rob Sennitt said: “This is an exceptional acquisition opportunity. There has been no exploration of any note at Falun since it closed in 1992 amid low commodity prices, meaning there is substantial upside.
“The strength of the opportunity is also demonstrated by Falun’s location along strike from our Greater Falun project, where we have just intersected visible zinc, copper and silver in the first hole at the new SkyttgruvanNaverberg target.
“This result builds on our thesis that the Greater Falun project is part of a major mineralised belt that includes the historic Falun mine.
“The opportunity to acquire the tenements associated with this historically significant mine allows us access to some of the most prospective tenure in the area while further consolidating our interests in the region. We will now own over 300sqkms in this highly prospective mining district.
“Combined with our Sala Project, where we recently defined our maiden Resource, Alicanto now has two outstanding assets.”
The Greater Falun Project is contiguous to the historic Falun mine (refer Figure 1).
The Company has entered into a binding agreement to acquire the historic Falun Mine and associated tenements from the current owners, Explora Mineral AB. This acquisition allows Alicanto to consolidate its interests in this highly prospective district and extends its total tenement area to 312km2.
Key terms of the agreement include:
• Total consideration of A$200,000, comprising:
• an immediately payable cash deposit of A$10,000;
• a cash payment on completion of A$40,000; and
• Alicanto shares to the value of A$150,000 to be issued at a deemed price equal to the VWAP over the 30 trading days prior to the date of completion using the Company’s available placement capacity under Listing Rule 7.1.
• The agreement is subject to two conditions precedent:
• Alicanto being satisfied (in its sole and absolute discretion) with the outcome of its due diligence investigations in respect of the assets; and
• approval of the transfer of the tenements to Alicanto by the Mining Inspector pursuant to the Minerals Act of Sweden.
Nothing contained in this announcement constitutes investment, legal, tax or other advice. You should seek appropriate professional advice before making any investment decision.
Source: Company Press Release