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Mandrake Resources (ASX:MAN) secures land access agreement

Mining
ASX:MAN      MCAP $19.70M
26 February 2021 16:15 (AEST)
Mandrake Resources (ASX:MAN) - Managing Director, James Allchurch

Source: Business News

Mandrake Resources (MAN) has entered into a binding access, compensation, and consent deed for its Newleyine prospect.

Newyeline is a nickel, copper, and platinum group elements prospect, located at the southern end of the company’s Jimperding Project in Western Australia. The prospect shares a number of similarities with Chalice Mining’s (CHN) Julimar Project, which is just 30 kilometres east of Jumperding.

These similarities include the presence of several large electromagnetic (EM) conductor plates. Just last week, Mandrake announced that an airborne electromagnetic survey over the Jimperding Project confirmed a high-conductance EM response at the Newyeline prospect.

Mandrake executed the land access agreement with the private owner of the property which hosts the Newyeline prospect.

The agreement will provide Mandrake with continued access to the prospect, allowing the company to conduct exploration activities on the site. This will include drilling activities, which are scheduled to take place during this quarter.

Mandrake will pay the property owner $20,000 in return for access to the prospect in the first year. The company also has the option to secure access for a second year, if it pays another $20,000 to the property owner.

Mandrake has also executed a property purchase option, which provides the company with the choice to purchase the property and associated mineral rights. The current property owner owns all of the site’s mineral rights, except for gold, silver and other precious metals.

The company will only exercise the property purchase option if a commercial discovery is made.

Mandrake Resources is up 5.95 per cent, trading at 8.9 cents per share at 2:45 pm AEDT.

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