Australia-based exploration company ActivEX has inked a Heads of Agreement with Ausmin Development to acquire latter's Eyre Peninsula graphite project in South Australia.
The company has an option to acquire 100% stake in Ausmin that holds three graphite exploration licenses – L 4309, EL4430 and EL application 2012/00185, spanning 1,371 km2.
Also, through this agreement, ActivEX acquires exclusive rights to explore the graphite in the licenses besides procuring rights to explore for all the metals in the deposits termed as Carpa and Siviour exclusive zones of EL 4430 and ELA 2012-00185.
Commenting on the developments, ActivEX managing director Doug Young stated that it was keen on acquiring the properties with strong strong conductivity target known for potential graphite deposits.
"There is plenty of evidence of graphite in the licence areas, including a good intersection of graphite in previous drilling but the key target which we call Siviour, is particularly attractive; it looks like a fold with a strong EM conductor in the core," elaborated Young.
The company, however, is mandated to complete exploration and evaluation alongside feasibility study before the agreement expires on 31 December 2016.
"An additional requirement is for ActivEX to position the graphite project in a company either listed on the ASX or to be listed within 90 days of exercise, with the shareholders of ADPL holding 22% of the issued capital of the acquiring company on a post-listed basis," ActivEX added.
"The main body of this conductor has not been drill tested, however there is a zone of 24 metres of good grade graphite mineralisation intersected in a single diamond hole just off the end of the anomaly," added Young.
A previous diamond drill hole located on the edge of the conductor intersected 24 meters of graphite mineralization, including 12.4 meters at 8.34% total graphite.