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Aruma Resources snaps up uranium and copper assets in tier-1 precincts of South Australia and Queensland

Published 27/05/2024, 12:05 pm
© Reuters.  Aruma Resources snaps up uranium and copper assets in tier-1 precincts of South Australia and Queensland
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Aruma Resources Ltd (ASX:AAJ) has picked up a trio of copper and uranium exploration assets in renowned tier-1 mineral precincts in South Australia and Queensland.

Pivotal acquisition

The company sees this as a pivotal acquisition, allowing it to expand its focus into key high-demand commodities – copper and uranium – via a promising portfolio of exploration projects in two of Australia’s pre-eminent mining regions.

The fresh assets include the Wilan IOCG-Uranium Project in the Olympic Dam precinct of South Australia and the Fiery Creek Copper Project and Bortala Copper Project in the Mt Isa region of Queensland.

All three projects have both stratiform and IOCG copper-gold discovery potential and the Wilan Project has the added lure of playa lake and paleochannel uranium targets.

As soon as the deal is complete, the company plans to hit the ground with targeted field work to define priority targets for first-phase drilling.

Consideration

Aruma is providing vendors NHM Holdings (Australia) Pty Ltd (NHMHA) with the following consideration for the acquisition:

  • 26.5 million fully paid AAJ ordinary shares, subject to a six-month voluntary escrow from date of issue;

  • 24.5 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price on Aruma securing all required approvals for drilling at the Wilan Project; and

  • 28 million options each non-transferable and exercisable into one ordinary AAJ share for a nil exercise price on AAJ reporting a drill intercept of 3 metres at greater than 600 parts per million (ppm) U308 or at least 20 metres at greater than 0.8% copper or metals equivalent at one of the new projects.

AAJ will also pay a 2% NSR to NHMHA shareholders over any minerals extracted and sold from the new projects.

Due diligence has been successfully wrapped up for the projects and the acquisition is now all but complete, subject to Aruma shareholder approval.

High-demand commodities

Aruma Resources managing director Glenn Grayson said: “We are excited about the company-changing potential of this acquisition.

“In seeking to expand our asset portfolio we have assessed a number of projects against key criteria designed to drive market support for the company and value accretion for shareholders.

“We see the combination of quality exploration asset portfolio in high-demand commodities, located in active tier-1 mineral belts in progressive mining jurisdictions as the clear right-fit for Aruma Resources.

“In tandem with our ongoing focus on our Western Australian assets, we plan to implement targeted field work programs across the new asset portfolio, with a view to defining priority targets and systematically drilling these projects to unlock and maximise their IOCG, uranium and copper potential.

“The company views the ability to acquire this IOCG, uranium and copper prospective asset portfolio at a time of prevailing strength in these commodity markets underpinned by a bullish long-term outlook as being potentially transformational, and we look forward to sharing details of our journey to unlock the value of this new asset portfolio in the weeks and months ahead.”

Read more on Proactive Investors AU

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