Metals Australia said that the acquisition will enhance its portfolio of battery metals and gold projects in Western Australia and the Northern Territory, the Tier 1 jurisdictions
Location of projects to be acquired from Payne Gully. (Credit: Metals Australia Ltd.)
Metals Australia has executed a binding sale agreement to acquire an 80% stake in Payne Gully Gold, which holds highly prospective battery and precious metals projects in Australia.
Payne Gully’s portfolio includes the Warrambie and Murchison Domain projects located in Western Australia, and the Tennant Creek project in the Northern Territory.
Under the terms of the agreement, Metals Australia is expected to issue 40 million shares of its common stock, at a deemed issue price of $0.07.
It will also issue an additional 84 million shares and make a cash payment of $300,000 to the PGG vendors, subject to shareholder approval.
Metals Australia said that the acquisition will enhance its portfolio of battery metals and gold projects in Western Australia and the Northern Territory, the Tier 1 jurisdictions.
Metals Australia chairman Mike Scivolo said: “The company has taken advantage of an outstanding opportunity to acquire a suite of highly prospective battery metals and gold projects with multiple drill targets near major deposits in Tier One jurisdictions.
“These new projects give Metals Australia the opportunity to build on its exploration success over the past few months.
“The Payne Gully acquisition is in line with the Company’s focus on projects in highly-prospective mineralised terranes such as in the Yilgarn and Pilbara regions of Western Australia and the Tennant Creek region of the Northern Territory.”
The Warrambie project is located in the Pilbara region of Western Australia, between Sabre Resources’ Sherlock Bay nickel sulphide project, and the Andover nickel sulphide discovery.
It is considered highly prospective for mafic intrusive nickel-copper-cobalt sulphide mineralisation analogous to Sherlock Bay and Andover nickel sulphide discovery.
The Murchison Domain project contains four large prospects, located close to major gold deposits such as the Big Bell deposit and the Mt Gibson mine in Western Australia.
The tenements are considered highly prospective for major gold deposits as well as Ni-Cu-Co-PGE and lithium mineralisation, said Metals Australia.
The Tennant Creek project is located in the Northern Territory with three tenements near the Warrego high-grade copper-gold deposit and one near Tennant Minerals’ Bluebird copper-gold discovery.
It is considered highly prospective for iron oxide copper-gold (IOCG) discoveries of the Tennant Creek style, said Metals Australia.