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- Cyclone Metals (CLE) agrees to buy Grand Port Resources after the parties enter a binding term sheet agreement
- Grand Port holds six highly prospective gold, copper, nickel and platinum group element (PGE) projects in New Zealand
- Additionally, Grand Port is making applications for lithium projects to further diversity its portfolio
- Cyclone will give Grand Port 900 million shares, however, the deal is subject to certain approvals
- On market close, Cyclone was in the grey and trading at 0.4 cents per share
Cyclone Metals (CLE) has agreed to buy Grand Port Resources after the parties entered a binding term sheet agreement.
Grand Port holds six highly prospective gold, copper, nickel and platinum group element (PGE) projects in New Zealand.
The projects include Macraes South, Muirs, Mareburn, Longwood Range, Waikerikeri and Drybread, which are all underexplored.
Additionally, Grand Port is making applications for lithium projects to further diversity its portfolio.
Under the agreement, Cyclone will give Grand Port 900 million shares and will give them the right to nominate one board member to join Cyclone’s Board.
However, the deal will need shareholder approval and minister consistent.
According to Cyclone, New Zealand is a premier investment destination for resources with successful explorers and new mines being approved.
“Grand Port owns an impressive portfolio of brownfield precious and base metal assets in New Zealand, which we believe, we can add significant value through our hands on approach and strong contacts in-country,” Executive Director Tony sage said.
“Other ASX companies are experiencing success in New Zealand and we look forward to developing these assets in the coming months to realise value for Cyclone’s shareholders.”
Following the completion of the acquisition, Cyclone plans to undertake a maiden JORC compliant mineral resource estimate at Muirs and commence first-pass drilling at Muirs and Mareburn.
Cyclone is expecting to complete the purchase in the coming weeks.
On market close, Cyclone was in the grey and trading at 0.4 cents per share.
