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- MinRex Resources (MRR) is expected to enter the Lachlan Fold Belt in New South Wales following a number of purchases and farm-in agreements
- The company has purchased four projects and entered farm-in agreements for an extra two
- MinRex will pay a total of $420,000 cash, 252 million shares and a 2 per cent net smelter royalty in respect of all mineral production from the projects
- However, in order for the deals to be successful, the company will need shareholder approval
- To purchase these projects MinRex is aiming to raise $2.9 million in a capital
- On the market this afternoon, MinRex is up 25 per cent and is trading for 3.5 cents
MinRex Resources (MRR) will enter the East Lachlan Fold Belt in New South Wales following a number of purchases and farm-in agreements.
The company has purchased Mt Pleasant, Sofala, First Find and the Sunny Corner and entered farm-in agreements for a further two more projects.
MinRex will pay a total of $420,000 cash, 252 million shares and a 2 per cent net smelter royalty in respect of all mineral production from the projects to a number of vendors.
However, for the deals to go through, the company will need shareholder approval. Shareholders will be able to vote at the upcoming annual general meeting on November 27.
The projects are complementary to MinRex’s Western Australian projects as the company looks to explore additional world-class areas within Australia.
To purchase these projects MinRex is aiming to raise $2.9 million in a capital raise.
Mt Pleasant
Mt Pleasant covers an area of around 166 square kilometres on the Eastern Margin of the Silurian- Devonian Hill End Trough of the East Lachlan Fold Belt.
Previous work has been completed at the project by CSR, Pacminex and Neo Resources. In 2012, a detailed aeromagnetic survey was completed and identified a high magnetitic anomaly.
The Fast Find
The Fast Find project covers approximately 20 square kilometres and is located south of the Sofala project area. Geology of the project includes a structurally controlled low sulphide gold.
Additionally, there is good road access which connects the project to Sofala project to major roadways.
The Sofala
The Sofala project covers an area of approximately 11 square kilometres and includes 10 historical mines and 16 mineral occurrences. Previous drilling in the 1990s include diamond and reverse circulation, which was completed by Renison Gold Corporation.
The Sunny Corner
Sunny Corner covers an area of 54 square kilometres and was “identified as a major graben in a rift valley between two or more stable continental plates formed during the Silurian to Middle Devonian period.”
Interestingly, it includes the first direct shipping mine in Australia.
The area was last explored in 2005 by Green Cross Resources, which included an 1860 metre drilling program.
The Placement
MinRex will conduct a placement to raise $2.9 million to sophisticated and professional investors. Funds from the raise will be used on the Lachlan Fold Belt projects.
Under the placement, the company will issue 145 million shares for 2 cents per share, with a one for 2 free attaching option for each exercisable at 4 cents each.
Why the East Lachlan Fold Belt?
The East Lachlan Fold Belt is a mining and exploration region that contains several major gold, copper-gold and silver deposits. These projects include Newcrest Mining’s Cadia-Ridgeway Mine, Alkane Resources’ Tomingley Mine and many more.
Investor interest in the area has increased after Alkane’s significant gold-copper porphyry mineralisation at the Boda Prospect.
Recently the U.S. Geological Service estimated that between four and ten porphyry systems remain to be found in the Lachlan Fold Belt. This has led to a number of companies, such as Newmont and Fortescue, purchasing land in the area.
“MinRex will provide further details on the East Lachlan Fold Belt projects in
the coming weeks,” the company said.
On the market this afternoon, MinRex is up 25 per cent and is trading for 3.5 cents at 1:32 pm AEDT.
