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- Silica sands explorer Perpetual Resources (PEC) has entered an option agreement to purchase 100 per cent of Sargon North
- Sargon North was acquired via a $500 payment fee, but the purchase will be finalised with the reimbursement of $11,500 from previous spending
- In return, the sellers will receive a one per cent royalty from all minerals extracted, produced and sold
- Perpetual says Sargon North demonstrates the potential for strong exploration and construction sand, as previous drilling by Iluka Resources outlined intervals of yellow-orange sands
- Crucially, acquiring the Sargon North tenement will expand the footprint of Perpetual’s industrial sands project portfolio
- These sands spanned a length of more than 5.4 kilometres, widths of 2.8 kilometres, and a depth of 39 metres
- Perpetual is steady on the market this morning, while shares are trading for 2.2 cents each
Silica sands explorer Perpetual Resources (PEC) has entered an option agreement to purchase 100 per cent of Sargon North.
Sargon North was acquired via a $500 payment fee, but the purchase will be final via the reimbursement of $11,500 from previous spending. This is expected within the next six months.
In return, sellers Kitara Investment, Peter Gianni, and Robert Jewson will receive a one per cent royalty from all minerals extracted, produced, and sold.
Sargon North lies next door to Perpetual’s existing Sargon Project in Western Australia, just 40 kilometres from Geraldton’s port. It’s also south from four producing construction sand mines.
When incorporating Sargon North, the Sargon Project spans 48 square kilometres and consists of an exploration licence application (Sargon North) and an already-granted exploration licence (the existing Sargon Project).
What’s at Sargon North?
Perpetual says Sargon North demonstrates the potential for strong exploration and construction sand, as previous drilling by Iluka Resources outlined intervals of yellow-orange sands.
These sands spanned a length of more than 5.4 kilometres, widths of 2.8 kilometres, and a depth of 39 metres.
Surface yellow-orange sands are also evident from satellite imagery.
These sands are now being modelled to help define the scale of the project and allow for Perpetual to begin exploration planning.
Crucially, acquiring the Sargon North tenement will expand the footprint of Perpetual’s industrial sands project portfolio.
“The expansion of the Sargon Project builds a critical mass and scale and enhances our potential product offering for both domestic and international customers,” Managing Director Rob Benussi commented.
“With the level of predicted future infrastructure and stimulus spending post-COVID-19, we are expecting a significant level of demand for raw building materials.”
Managing Director, Rob Benussi
“The Sargon Project is uniquely positioned to capitalise on this increased demand due to its advantageous location, existing infrastructure access and potential scale defined by the previous drilling,” he added.
Perpetual is steady on the market this morning and shares are trading for 2.2 cents each at 10:31 am AEST.
