ASX-listed Battery Minerals has signed a binding agreement to buy 67% of Gippsland Prospecting, which has the sole right to apply for an exploration licence immediately adjacent to fellow-listed Stavely Minerals’ Thursday’s Gossan copper/gold project, in Victoria.
Known as Block 4, the tenement covers 809 km2 and hosts the historic Moyston gold mine, which produced 75 000 oz at 22 g/t gold.The exploration licence is also 7 km from the rich Stawell gold mine, which has produced five-million ounces of gold.
Gippsland Prospecting won the Victorian government tender, which gave it the sole right to apply for the exploration licence.
Battery Minerals will pay shareholders of Gippsland Prospecting A$335 000 and issue them 294 373 780 shares.
Battery Minerals chairperson David Flanagan said that there was extensive evidence to support the view that Block 4 was highly prospective for gold and base metals.
“The tenement has not been thoroughly explored for more than a decade and even then it was limited to shallow drilling near the Stawell mine.
“Given the recent substantial exploration success close by and the outstanding prospectivity of the geology, we are looking forward to applying modern exploration techniques and drilling a new project that has effectively been mothballed for over ten years.”
Shares in Battery Minerals climbed 14% to A$0.008 a share on Monday.