Scorpion Minerals Limited (ASX: SCN) has entered into a binding Heads of Agreement with eMetals Limited to acquire a 100% interest in tenements E 20/896, E 20/963, E 20/964 and a 90% interest in E 20/885 which cover a combined 904 sq. km in the Murchison Goldfield of Western Australia.
Under the agreement, SCN will acquire its interest in the tenements for a cash consideration of $12,500 and 4,000,000 fully paid ordinary shares in SCN. EMT will also receive a 0.5% net smelter return (NSR) royalty in respect of minerals mined from the Tenements should commercial mining be undertaken.
Settlement is to be completed within 60 days of executing this agreement subject to successful completion of due diligence and other conditions precedent.
Director, Bronwyn Barnes, said the four tenements (Poona Project) are contiguous and south of SCN’s Pharos tenements. The Poona Project contains the Mughal Ni-Cu target plus the Poona and Jackson’s Reward Rare Metal Pegmatite occurrences, all of which are located immediately south of SCN’s high priority PGE-Ni-Cu targets at Pallas.
The Company intends to make a further announcement about the mineral prospectivity of the Poona Project after receipt and review of data from eMetals.
“We are pleased to be expanding our footprint in the Murchison via this low-cost transaction with EMT,” Ms Barnes said.
“The addition of these new tenements consolidates Scorpion’s position in the Murchison and builds on our already robust portfolio of copper, gold and PGE-Ni-Cu targets in the region.
“Plans are well advanced to support drilling activity at Pallas and Mt Mulcahy once all necessary approvals and clearances are received, and we will now broaden this programme to include an initial programme across this new tenement package.”
Following receipt of all statutory approvals, SCN will undertake an extensive drilling campaign across priority targets at Pharos.
Drilling will include testing of the PGE-Ni-Cu target identified at Pallas, the shallow high grade Gold Prospect at Cap Lamp, and the Cu-Au-Zn VMS targets at Mt Mulcahy in early 2022.
This drilling will be expanded to include targets within the Poona Project as priorities emerge during the due diligence period.
For further information please visit: https://www.scorpionminerals.com.au/
