- Eastern Metals (EMS) expands its Arunta Project in the Northern Territory after acquiring the Neutral Junction Project from Bowgan Minerals.
- The newly acquired project covers six tenements across 504 square kilometres which are prospective for base metals, lithium, rare earth elements (REEs) and gold.
- Eastern Metals and Bowgan Minerals have executed a binding heads of agreement, with an asset sale agreement to follow.
- Shares in EMS were trading flat at 20 cents.
Eastern Metals (EMS) has expanded its Arunta Project in the Northern Territory after acquiring the Neutral Junction Project from Bowgan Minerals.
The newly acquired project covers six exploration licences across 504 square kilometres.
EMS has 100 per cent interest in five tenements acquired and a 75.14 per cent joint venture interest in a sixth tenement held by Mithril Resources (MTH).
The tenement package is prospective for base metals, lithium, rare earth elements and gold, including a highly prospective copper trend adjacent to the Home of Bullion copper mine owned already by Eastern Metals.
Managing Director and Chief Executive Officer Wayne Rossiter said the new area is known to have anomalous copper from earlier exploration.
“Our Arunta Project has been significantly enhanced with this acquisition which dramatically increases the scope to discover additional copper and gold resources along trend from the Home of Bullion Mine, in addition to targets already identified on existing tenure,” said Mr Rossiter.
“The significant increase this acquisition brings in the Barrow Creek pegmatite field and broader Arunta Pegmatite Province provides Eastern Metals with significantly increased potential for discovery, not just of lithium, but also REEs, base metals and gold.”
Eastern Metals and Bowgan Minerals have executed a binding heads of agreement, with an asset sale agreement to follow.
The key terms of the acquisition include consideration of $150,000 made up of $50,000 in cash and the allotment of more than 408 thousand fully paid EMS shares, issued at a price of 24.5 cents per share.
The issue price is the 30-day VWAP of the company’s shares traded on the ASX and is a 22.5 per cent premium to the company’s initial public offering (IPO) price in October last year.
On completion of the acquisition, EMS’ Arunta Project land holding totals 593 square kilometres, inclusive of the company’s existing Barrow Creek tenement.
Several companies including Core Lithium (CXO) and Australasian Gold (A8G) have commenced exploration for lithium in the Barrow Creek pegmatite field and wider Northern Arunta Pegmatite Province.
Shares in EMS were trading up 5 per cent to 21 cents by the end of the day.