Aruma Resources has announced the acquisition of a portfolio of copper and uranium assets in both South Australia and Queensland.
The company has executed a share acquisition agreement to acquire the Wilan IOCG-Uranium Project in the Olympic Dam precinct in South Australia and the Fiery Creek Copper Project and the Bortala Copper Project in the Mt Isa region of Queensland from NHM Holdings (Australia) (NMHA).
Aruma Resources said that the acquisition will see the company expand its focus into key high demand commodities – copper and uranium – via a portfolio of high-potential exploration projects in two of Australia’s pre-eminent, active mineral precincts.
Aruma Resources has completed due diligence over the new projects. Completion of the acquisition remains subject to Aruma shareholder approval, to be sought at a shareholder meeting.
On completion of the acquisition, Aruma Resources plans to commence targeted, systematic field work programs across the new projects to define priority drill targets with the aim of progressively drill testing priority targets to unlock each project’s full value proposition.
As consideration for the acquisition, Aruma proposes to issue the following to NHMHA shareholders:
- 26.5 million fully paid Aruma Resources ordinary shares, which will be subject to a voluntary escrow period of six months from the date of issue
- 24.5 million options each non-transferable and exercisable into one share for a nil exercise price upon Aruma Resources securing environment protection and rehabilitation (PEPR) approval for drilling at the Wilan Project in South Australia and obtaining any other necessary approvals to conduct drilling at the Wilan Project
- 28 million options each non-transferable and exercisable into one share for a nil exercise price upon Aruma Resources reporting an aggregate drilling intercept (in one drillhole) of 3m at greater than 600ppm U308, or at least 20m at greater than 0.8 per cent copper or metals equivalent at one of the new projects. Aruma will also pay a two per cent net smelter royalty to NHMHA shareholders over any minerals extracted and sold from the tenements
Aruma Resources’ Managing Director, Glenn Grayson, said, “We are excited about the company-changing potential of this acquisition. In seeking to expand our asset portfolio we have assessed a number of projects against key criteria designed to drive market support for the company and value accretion for shareholders.”
Mr Grayson said that Aruma Resources sees the combination of quality exploration asset portfolios in high-demand commodities, located in active tier one mineral belts in progressive mining jurisdictions as the clear right-fit for Aruma Resources.
“In tandem with our ongoing focus on our Western Australian assets, we plan to implement targeted field work programs across the new asset portfolio, with a view to defining priority targets and systematically drilling these projects to unlock and maximise their IOCG, uranium and copper potential.
“The company views the ability to acquire this IOCG, uranium and copper prospective asset portfolio at a time of prevailing strength in these commodity markets underpinned by a bullish long term outlook as being potentially transformational and we look forward to sharing details of our journey to unlock the value of this new asset portfolio in the weeks and months ahead.”
The Wilan Project, located on the eastern side of the Gawler Craton in South Australia, encompasses a total area of 1,993km2 and is covered by post Devonian sediments with a number of previously identified deposits, including IOCG and uranium.
The Bortala Project is located in the northern area of the Mount Isa copper-belt and is interpreted as being prospective for Mount Isa/Mammoth-style breccia copper deposits and epigenetic uranium mineralisation within the reactive sediments of the western Mt Isa succession.
Also located in the Mount Isa copper belt, the Fiery Creek Project has had minimal previous drilling and no detailed geophysics undertaken but is interpreted as being analogous to the units that host copper deposits within the western fold belt of the Mount Isa Inlier.
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