- Fin Resources (FIN) has bumped up its interest in the WA-based McKenzie Springs project following an earn-in deal with Cazaly Resources (CAZ)
- Fin already owned 51 per cent of the project when it inked up the earn-in agreement with Cazaly subsidiary Sammy Resources, which owned the rest of the project, in April 2020
- Under the terms of the deal, if Fin could spend $500,000 in exploration at McKenzie by November 30, its interest would be bolstered to 70 per cent
- Fin told investors today it met these earn-in requirements
- Assays from a recent maiden drilling program are pending, to be reviewed alongside electromagnetic survey data
- Shares in Fin Resources gained almost 5 per cent today to close at 2.2 cents each
Fin Resources (FIN) has bumped up its interest in the WA-based McKenzie Springs project following an earn-in deal with Cazaly Resources (CAZ).
The company already owned 51 per cent of the project in a joint-venture deal with Cazaly subsidiary Sammy Resources. Then in April, Fin struck a new deal with Sammy to bolster this interest by 19 per cent if it met some key spending requirements.
Namely, Fin needed to have spent $500,000 on exploration work at the McKenzie Springs project by November 30, 2020, to control 70 per cent of the project.
When the earn-in arrangement was signed, Fin had already spent around $260,000 on McKenzie exploration.
Today, the company said it completed all of the spending requirements and now owns 70 per cent of the project.
The McKenzie project
The 134-square-kilometre McKenzie Springs project is in WA’s Kimberley region, near the Northern Territory border.
The project has proven to be prospective for nickel, copper, cobalt, and platinum group metals (PGM).
As part of its earn-in exploration spend, Fin took on a maiden drilling program at the McKenzie Springs area. The company said assays from this program are still pending.
Nevertheless, a down-hole electromagnetic survey on all three of the holes from this drilling program returned what Fin called “a number of highly-encouraging conductors”.
The prospecitvity of these conductors will be assessed in conjunction with the pending assay results.
Shares in Fin tacked on 4.76 per cent today to close at 2.2 cents each. The company has a $6.74 million market cap.