Battery Minerals (ASX:BAT) - Executive Chairman, David Flanagan
Executive Chairman, David Flanagan
Source: Business News
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  • Battery Minerals (BAT) has signed a binding agreement to purchase 67 per cent of Gippsland Prospecting
  • The company will pay Gippsland shareholders $335,000 and issue them more than 294 million shares in return for a share in Gippsland
  • Battery Minerals will also acquire a highly prospective exploration licence that Gippsland is currently in the process of applying for
  • Under the agreement, two Gippsland Directors will become Directors of BAT
  • Battery Minerals is steady today with shares currently trading for 0.7 cents

Battery Minerals (BAT) has signed a binding agreement to purchase 67 per cent of Gippsland Prospecting.

Gippsland Prospecting has the sole right to apply for a highly-prospective exploration licence immediately next door to Stavely Minerals’ (SVY) Thursday’s Gossan copper-gold project in Victoria.

If the binding agreement is successful then Battery Minerals will acquire this project as well.

Known as Block 4, the tenement covers 809 square kilometres and hosts the historic Moyston gold mine which produced 75,000 ounces at 22g/t gold.

It is considered highly prospective for shear-zone hosted gold deposits, volcanic-hosted based metals mineralisation, and porphyry copper mineralisation.

Battery Minerals Executive Chairman David Flanagan said that there is extensive evidence to support the idea that Block 4 is highly prospective for both gold and base metals.

“Block 4 has the same rocks that host the Thursday’s Gossan copper-gold discovery and it is in the same corridor that hosts Navarre’s gold discoveries,” David said.

“The tenement [Block 4] has not been thoroughly explored for more than a decade and even then it was limited to shallow drilling,” he added.

The adjoining Thursday’s Gossan Project is known to host high-grade copper intersections with Stavely stating that the mineralisation remains open along strike and down dip.

The project has returned results such as three metres at 2.65 per cent copper, 1.17g/t gold, and 68g/t silver from 151 metres, and three metres at 4.14 per cent copper, 0.36g/t gold and 59g/t silver from 87 metres.

Battery Minerals will pay Gippsland Prospecting $335,000 and issue them 294,373,780 shares in return of 67 per cent of the company.

As a result, Block 4 will be renamed E67801 on the grant of the exploration licence.

However, this acquisition is subject to the approval of Battery Minerals shareholders.

Under the terms of the agreement, Gippsland Directors Kent Balas and Darryl Clark will become Directors of Battery Minerals.

Battery Minerals is steady today with shares trading for 0.7 cents at 12:31 pm AEDT.

BAT by the numbers
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