PERTH (miningweekly.com) – Gold and base metals explorer Arc Exploration has moved to acquire privately-held explorer Cyprium Australia, which has an option to earn an 80% interest in the Cue copper project, in Western Australia.
Under the terms of the agreement Arc will acquire all of the issued capital of Cyprium in exchange for 5.75-million Arc shares, at an issue price of 20c each, with the consideration shares to be subject to a 24-month voluntary escrow.
Cyprium in February this year struck a joint venture (JV) agreement with ASX-listed Musgrave Resources over all the non-gold rights at the Cue project.
Under the terms of that agreement, Cyprium would be required to pay Musgrave A$250 000 and spend A$2-million on exploration over a two-year period, to obtain an 80% interest in the project, with Musgrave retaining a 20% free-carried interest until the completion of a definitive feasibility study.
The Cue copper project includes the Hollandaire deposit, which has a mineral resource of 39 000 t of contained copper, with significant upside potential.
Arc said on Monday that should Cyprium exercise its option over the Cue project, Arc would issue Musgrave some A$250 000 worth of shares, at a price equal to the 15-day volume weighted average share price, with those shares to be held in escrow for a period of 12 months.
The transaction between Arc and Cyprium was subject to the completion of a due diligence, and Arc completing a capital raise of a minimum A$2-million, as well as shareholder and regulatory approvals.
The transaction was also subject to Cyprium exercising its Cue option.
Arc told shareholders that the company was aiming to build a midtier copper mining business, with the company continuing to assess other advanced-stage projects in Australia.