Narryer Metals Limited (ASX:NYM) has entered an option agreement for 100% ownership of the Rocky Gully Rare Earth Element (REE) project, located in the western Albany Frazer Belt, Western Australia.
Historic exploration drilling shows significant REE mineralisation in saprolite, with geological logging and geochemistry suggesting the potential for ionic absorbed clay hosted REE mineralisation. Previous exploration work of the area also shows good prospectivity for both magmatic and lateritic Ni-Cu-Co mineralization.
“Narryer Metals identified the opportunity to add a potential significant ionic clay REE project to its critical minerals’ portfolio with Rock Gully,” Managing Director, Dr Gavin England, said.
“We were attracted by the consistent thick intersections, significant strike length, shallow depth and importantly containing high value magnet REEs. It is compellingly evident the project has further exploration potential.
“The Option structure allows the company to conduct on-ground work to confirm Rocky Gully’s potential prior to exercise.
“This project significantly adds to the company’s current REE focus with work continuing at the Ceduna Project on the Gawler Craton of South Australia, and Mt Nairn area in the Narryer Terrane of Western Australian.”
Agreement Details
Narryer Metals has secured an option to purchase 100% of Rocky Gully Exploration Pty Ltd. The sole asset is the Rocky Gully Project, comprised of two granted exploration licences, E70/5037 and E70/6140. The key terms of the agreement are:
• The option period is nine months to allow for due diligence, during which Narryer Metals will assume all responsibility to maintain the tenements in good standing;
• A non-refundable option fee of A$20,000 (ex-GST) was paid by Narryer on signing the option;
• On exercise of the option, the vendor will receive a fee of A$80,000 cash, with an additional Z$140,000 in either cash and/or shares (14-day VWAP from execution date) at Narryer Metals’
discretion; and
• The vendor is to receive 1.5% NSR royalty on any mineral produced.
For further information please visit: https://www.narryer.com.au/
