Astro Resources NL (ASX:ARO) has executed definitive transaction documents with Greenvale Mining Ltd (ASX:GRV) to acquire an 80% interest in Greenvale’s subsidiary, Knox Resources Pty Ltd, and is already planning a diamond drill hole.
Knox is the sole owner of the Georgina Basin Iron-Oxide Copper-Gold (IOCG) Project in the emerging East Arunta mineral province of the Northern Territory.
The core outstanding condition for completion of the transaction is approval from Astro shareholders, which the company will seek in a general meeting expected to be held in early November.
Details of the definitive agreement
Subject to shareholder approval and successful completion of the proposed transaction, Greenvale and Astro have agreed to undertake a work program consisting of a deep diamond drill hole at the Leichhardt East prospect and geophysical surveying over the Ranken Project area, immediately following completion.
The two companies have designed the Leichhardt East drill hole to test for copper-gold mineralisation potential.
The intended hole will target a combined magnetic-gravity anomaly, close to regional faults, where low-level copper mineralisation has been identified in previous drilling in the vicinity.
The Ranken geophysical surveying is designed to explore for gravity anomalies that may host base metal mineralisation in rocks prospective for sediment-hosted deposits and accurately establish depth to basement rocks.
Within the terms of the transaction agreement, Astro agrees to cover 80% of the program's cost and Greenvale 20%.
The intended exploration activities at the Georgina Basin project are expected to be subject to a financial grant from the Northern Territory Government.