IGO Limited (ASX: IGO), through its subsidiary IGO Newsearch, today signed a contract with another ASX listed company, Boadicea Resources (ASX: BOA), to lock the latter’s core mineral rights in the Fraser Range (Fraser Range). Including the mining rights in the same direction as the Nova mine.
Announcement highlights
In the conditional asset sale contract and the share subscription contract, IGO has the exclusive right to explore 9 Boadicea mineral rights in the Fraser Mountains in the next 5 years;
The nine mining tenements include Symons Hill, the Nova mining tenement adjacent to IGO, and other mining tenements found immediately adjacent to Silver Knight and Mawson.
Details of this transaction
Pay Boadicea a non-refundable cash fee of A$5.5 million in advance;
IGO subscribed for 6,250,000 shares of Boadicea at a unit price of A$0.24 per share, for a total of A$1.5 million;
If IGO is able to discover mineralization within 5 years and assess the amount of JORC resources, it needs to pay Boadicea A$50 million in cash;
IGO needs to pay Boadicea 0.75% of the production profits of these 9 mining rights as beneficiation equity.
The mining rights transaction needs to be approved by the BOA board of directors.
The Symons Hill tenement (E28/1932) has very high prospects for exploration, and it is just off the eastern border of the Nova mining tenement. The mineral rights cover a large number of stratums and structures with potential for exploration, including IGO's Nova-Bollinger deposit.
IGO’s Managing Director and CEO, Peter Bradford (Peter Bradford) commented: “As the main mineral rights owner along the Fraser Range and the operator of Nova, IGO firmly believes that the region has The potential of multiple nickel-copper-sulfide deposits. In particular, the Symons Hill tenement, adjacent to the Nova mining tenement, is an area with relatively little exploration so far. We are keen to explore this area to find something similar to Nova Nickel-copper-cobalt mineralization."
IGO shares fell 4.4% today to A$4.35, with a market value of A$2.57 billion.
