PERTH (miningweekly.com) – Junior Carbine Resources has struck a deal to acquire the Sandbox silica sands project, in Far North Queensland, from FNQ Sands.
Under the terms of the agreement, Carbine Resources would issue more than 166.66-million shares, at a deemed price of 3c each, in two tranches. The first tranche will consist of 116.66-million shares, while the second tranche, of a further 50-million shares, will be subject to the grant of a mining licence.
Carbine Resources will also be liable for a A$500 000 cash payment on completion of the term sheet, and a A$2.5-million in milestone payments over the Sandbox project, based on sales targets and sales prices.
The Sandbox project covers 8 104 ha and offers Carbine Resources the opportunity of a near-term development project, and has the potential for a significantly expanded resource, while Carbine Resources continues to advance its own Muchea project, in Western Australia.
“This acquisition complements the company’s existing strategy and fits well with its existing plans at its Muchea project,” said MD Peter Batten.
“The Sandbox project offers Carbine potential access to near-term development while it continues to develop its exciting large-scale Muchea project. Our goal through undertaking the Sandbox acquisition is to secure the potential for an earlier stage production and subsequent cashflow scenario with the object of self-funding the development of the Muchea project.”
Batten said that the vendors had completed a significant amount of work drilling the initial development area sufficiently to complete a mineral resource estimate, commissioning processing studies that have identified potential low cost processing options, and entering into negotiations with port and land holders to secure access and reduce the work and time Carbine would require before being in a position to evaluate a startup feasibility study.