PERTH (miningweekly.com) – ASX-listed explorer Metals Australia has struck a deal to acquire the Lac du Marcheur cobalt project, in Quebec, while also raising A$2.45-million through a private share placement.
Under the acquisition agreement, Metals Australia has a 15-day period to conduct a due diligence on the Lac du Marcheur project, after which time the junior could choose to acquire the project in exchange for 12.5-million fully paid ordinary shares.
The vendor of the asset will retain a 2% net smelter royalty on all cobalt material mined and sold at the project.
The project comprises two discrete contiguous groups of claims, totalling some 1 780 ha. The project is made up of 35 granted mineral claims and is located to the north and south of TSX-listed Hinterland Metals’ Chilton cobalt project.
Metals Australia director Gino D’Anna said on Wednesday that the agreement was an outstanding opportunity for the company as it continued to enhance its asset portfolio, which is aligned to technologically advanced metals.
“The agreement to acquire the project was a natural decision for Metals Australia, given our current landholding and strategic position in Quebec, and our desire to be at the forefront of the technological revolution that is the lithium-ion battery.”
He pointed out that trench samples from the Lac Puaze cobalt occurrence, within the project area, have positioned the project as one of the highest-grade cobalt projects in the world.
“A fieldwork programme designed to identify extensive cobalt mineralisation on the property is due to commence within four weeks from the completion of the acquisition. Our proposed exploration programme will include prospecting, detailed mapping, ground geophysics and diamond drilling,” D’Anna said.
Meanwhile, Metals Australia has placed some 327.9-million shares at an issue price of A$0.0075 each, to raise A$2.45-million.
Funding will be used on exploration activities at existing projects, Metals Australia said.