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- Fe Limited (FEL) is acquiring a 60 per cent stake in the Tennant Creek tenement package from Gecko Mining Company
- The iron ore company will pay $5 million in cash and 85 million FEL shares and 75 million unlisted options as consideration
- Located in the Northern Territory, the tenements cover 240 square kilometres in the highly prospective Gecko-Goanna copper gold corridor
- FEL plans to focus on the Orlando pit within the asset, saying there is significant exploration potential throughout the tenements
- Shares in FEL are trading down 14.3 per cent at 5.4 cents each at 11:25 am AEST
Fe Limited (FEL) has announced its acquiring a 60 per cent stake in the Tennant Creek tenement package from Gecko Mining Company.
Located in the Northern Territory, the tenements cover a 240 square kilometre patch in the highly prospective Gecko-Goanna copper gold corridor.
Historically the corridor has produced more than 5.5 million ounces of gold at 19.3 grams per tonne and 488,000 tonnes copper at 2.9 per cent.
FEL plans to pay $5 million in cash as well as hand over 85 million FEL shares and 75 million unlisted options as consideration for the package.
Each option will have an exercise price of 10 cents each and three year expiry date, with FEL to also pay the first $10 million in exploration costs.
The company said it planned to initially focus on the Orlando pit, where it believes there was the potential for open pit early cashflow opportunity.
Fe Limited Executive Chairman Tony Sage added there was significant exploration potential throughout the tenements.
“Mature copper/gold assets are hard to find in today’s market given the attractive thematic for those commodities, particularly for copper with its connection into the battery metals space,” Mr Sage said.
“The work that’s been done by on the GMC ground since the project was
acquired from Evolution Mining Ltd in 2020 has identified some interesting opportunities for us to evaluate, with the potential to fast track production. We look forward to our team taking these concepts forward.”
Shares in FEL are trading down 14.3 per cent at 5.4 cents each at 11:25 am AEST.
