TORONTO (miningweekly.com) – Australian explorer Carnavale Resources has exercised an option to acquire private firm Tojo Minerals, which has the rights to the Red Hills project, in Nevada, and the Little Butte project, in Arizona.
Perth, Australia-based Carnavale said in a statement that it would move to immediately ramp up exploration activities at both projects.
Carnavale considered the two massive sulphide gold/silver/zinc/lead/copper targets at Red Hills to have excellent near-term resource potential, while the four large Carlin-style anomalies and the Little Butte gold/copper project enhanced exploration upside as they were advanced up the value curve.
The company planned to submit about 1 200 detailed soils samples, mapping and sampling of the historic adits and other underground workings at Red Hills before undertaking a diamond-drilling campaign, with other geophysical surveys at Little Butte, to target the primary source to the large gold/copper supergene blanket that had been defined to date.
Under the terms of the deal, Carnavale would issue Tojo shareholders 21-million shares and 42-million performance shares, which could be converted to up to 42-million fully paid shares in Carnavale upon the successful completion of certain resource-based performance milestones.
The majority of Tojo shareholders had agreed to a voluntary hold period for issued shares until August 28.
The transaction was expected to close on March 16.