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Licence to drill: Mi6 snaps up Capricorn’s Ti Tree Project in WA’s Gascoyne

Special Report: Minerals 260 says it’s agreed to acquire Capricorn Orogen’s Ti Tree Project and all of the 20 exploration … Read More
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Minerals 260 says it’s agreed to acquire Capricorn Orogen’s Ti Tree Project and all of the 20 exploration licences that collectively form the Gascoyne Province-based project.

And Ti Tree looks like a cracker – surrounded, hemmed in and right on top of all sorts of what an understated MI6 (ASX: MI6) calls “significant mineral occurrences.”

Not only does it adjoin the southern boundary of Dreadnought Resources’ (ASX: DRE) Mangaroon Project, where significant Rare Earth Element (REE) and nickel-copper (Ni-Cu) mineralisation has been discovered recently, but Hastings Technology Metals’ (ASX: HAS) Yangibana REE Project (where mine construction is underway) is also a quick drive to the north.

Then, located immediately to the south, is the Yinnetharra Lithium Project, recently acquired by Red Dirt Metals (ASX: RDT).

Ti Tree Project – location, regional geology (Geoscience Australia), tenure and prospects. Image supplied.

MI6 snapped up Ti Tree for $1.3m cash and the issue of 54,965,000 Mineral 260 shares, which will represent 19.99% of the company’s issued capital following the issue of these shares.

That sits very well with Minerals 260’s strong cash position (~$23 million at 30th June 2022) and ensures exploration momentum can be conjointly maintained both at Ti Tree and the company’s other key asset, the Moora/Koojan Project in the rapidly emerging Julimar province, where a 10,000-15,000m Reverse Circulation (RC) drilling program is planned for the coming summer.

The acquisition follows hot on the heels of the headline Mi6 encounter with the latest of its significant gold mineralisation hits, intersected last week in follow-up reverse circulation (RC) drilling at the Angepena prospect, which is part of the company’s 100%-owned Moora Project in WA.

Those results included 16m @ 2.8g/t Au from 48-64m and others that struck a note with investors.

And Ti Tree already bears fruit…

The Ti Tree project has previously been explored for precious and base metals, most recently by Capricorn and neighbouring tenement holders, underlining  the region’s prospectivity for REE and lithium mineralisation.

Some of the activities already undertaken include:

  • Compilation and validation of historic exploration data.
  • Re-processing and interpretation of publicly available geophysical datasets.
  • Acquisition of high-resolution aeromagnetic, radiometric and gravity datasets.
  • The collection of >15,000 ultrafine fraction soil samples.
  • Reconnaissance campaigns including rock chip sampling.
  • Prospectivity and targeting studies.

A clear road map

That work has provided an ideal road map of priorities for MI6, with multiple targets already identified which will form the focus of its initial exploration work.

Additionally, MI6 says it will undertake a review of the prospectivity for REE and lithium, the potential of which has only recently been recognised in the area.

Government permitting is also in place to enable drilling to commence over key areas once targets have been validated and heritage clearances secured.

Minerals 260 managing director David Richards says his team is ready to rip in.

“We’re looking forward to rapidly advancing the Project, building on the extensive knowledge gained from several years of quality exploration work and getting the drill rigs going as soon as possible,” he said.

Richards told Stockhead that the acquisition of such a large, contiguous area in an emerging, highly prospective region is an exciting opportunity for Minerals 260 and its shareholders.

“The deal is consistent with the company’s philosophy of targeting under-explored areas, previously considered less fashionable, with the potential to discover truly world-class mineral deposits.

“In this regard, Ti Tree is a complementary addition to our flagship Moora Project, representing a high-quality geological opportunity in an under-explored region with the potential for large-scale discoveries in a basket of commodities that fits extremely well with our strategic focus,” he added.

Key Terms of the acquisition:

  • The agreement is between Minerals 260 and Augustus Copper Limited (to be renamed “Augustus Minerals Limited”) which holds the legal and beneficial interest in 100% of the issued capital of Capricorn, which in turn has a 100% interest in the tenements comprising the Ti Tree Project.
  • Payment of a $75,000 deposit on execution of a Binding Letter Agreement (“BLA”). The BLA has been executed and the $75,000 payable within 2 days of execution.
  • Payment of further $225,000 upon satisfactory completion of due diligence by Minerals 260 and the execution of a Definitive Sales Agreement (“DSA”) within 15 business days of executing the BLA (or such later date as agreed by the parties).
  • Minerals 260 to issue 54,965,000 shares (“Consideration Shares”) and pay $1,000,000 cash on completion.
  • Completion of the acquisition is conditional on, amongst other things:
    • the satisfactory completion of due diligence by Minerals 260 and the execution of the DSA;
    • the receipt of shareholder approval for the issue of the Consideration Shares under ASX Listing Rule 7.1; and
    • the execution of associated agreements and the receipt of necessary third-party consents.
  • Right to acquire 50% interest of private royalties (currently 2.5% NSR) on the Project tenements at any time by paying $1,250,000 cash and a Right of First Refusal to acquire the remaining 50% of the royalties.

Capricorn will also have right to appoint a director to the Minerals 260 board, subject to completion of the deal.

In the event that a director is nominated, 50% of the consideration shares will be subject to voluntary escrow for a period of 12 months from completion of the acquisition, on customary terms. 

 


 

 

This article was developed in collaboration with MI6, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Licence to drill: Mi6 snaps up Capricorn’s Ti Tree Project in WA’s Gascoyne appeared first on Stockhead.




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