Dynamic Metals Ltd (ASX:DYM) and Western Mines Group Ltd (ASX:WMG) have entered into a binding agreement that will see WMG acquire 100% of DYM’s neighbouring tenement E39/2134, which is contiguous to its current Mulga Tank project area.
The acquisition would significantly expand WMG’s Mulga Tank Ni-Cu-PGE Project, on the Minigwal Greenstone Belt, in Western Australia’s Eastern Goldfields. It expands WMG’s project area to 425 square kilometres, covering some 37 kilometres strike and the entire under explored Minigwal Greenstone Belt.
Tenement E39/2134 is already granted with exploration programs to start immediately.
WMG will pay Dynamic $20,000 cash, 100,000 fully paid ordinary shares in DMG, 200,000 options over ordinary shares (with an exercise price of $0.60 per share, exercisable three years from the date of issue) and will grant Dynamic a 1% Net Smelter Royalty (NSR) in respect of any minerals extracted and recovered from the tenement.
“This strategic acquisition secures the final missing piece of the Minigwal Greenstone Belt and consolidates WMG’s ownership of the Mulga Tank Ultramafic Complex,” WMG managing director Caedmon Marriott said.
“The new ground is contiguous to, and surrounded by, WMG’s tenements E39/2132 and E39/2299 and contains a number of interesting looking interpreted ultramafic bodies extending from the Panhandle area of the Mulga Tank Complex. Tenement E39/2134 is already granted so we intend to get on the ground there as soon as possible.”