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NewPeak Metals (ASX:NPM) is continuing its foray into the critical minerals space with the acquisition of a Queensland project with significant prospectivity for vanadium.
The company has entered into a binding term sheet with AusVan Battery Metals Pty Ltd to take on the Allaru Vanadium Project, which holds an inferred mineral resource estimate (MRE) of 710 million tonnes of vanadium in Queensland’s Julia Creek vanadium province.
NewPeak has previously shifted its focus away from gold – where it held multiple assets across jurisdictions including Finland, Argentina, New Zealand, and Sweden. It divested the Swedish, Finnish, and Kiwi projects earlier this year, and has taken on a number of new ones in the critical minerals space.
These include the George River uranium, rare earth elements and scandium project in Canada – reported in June and July – and the Northern Territory’s Treuer Range uranium-vanadium project announced in July.
As for Alluru, it covers 1,498 square kilometres comprising six granted Exploration Permits for Minerals (EPM) and one EPM application, for a total of 468 subblocks.
The project holds two key mienralisation domains: Shallow weathered vanadium mineralisation, believed prospective for molybdenum and REE co-products; and deeper fresh vanadium mineralisation, with potential transport fuel co-product.
It has been subject to drilling of 116 holes across the project area between the 1960s and this decade, in 2021, with 44 holes drilled by AusVan.
In conjunction with its acquisition, NewPeak will be rolling out a rights issue capital raising, aiming to raise between $2 million and $3 million at an issue price of 1.65 cents per share.
NewPeak shares last traded at 1.3 cents – a rise of 18.18% since market open.
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This article originally appeared on Stockhouse and was reproduced with permission.
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