- Mandrake Resources (MAN) secures a binding term sheet to acquire the Delfin copper project in Chile’s prolific Antofagasta region
- The gold and base metals explorer will acquire a 100 per cent interest in Atacamoz for an upfront consideration of $1 million and 80 million shares
- Mandrake says acquiring the Delfin project is an “outstanding opportunity” to conduct modern exploration activities and establish a JORC-compliant copper resource
- Early next quarter, the company will commence exploration which will include re-interpreting existing geophysical data, assessing rock chip samples, and drilling
- Company shares have soared 46.8 per cent to trade at 6.9 cents
Mandrake Resources (MAN) shares have soared today on news that the company is set to acquire the Delfin copper project in the Antofagasta region of Chile.
The company executed a binding term sheet to acquire a 100 per cent interest in Atacamoz which, through its wholly-owned Chilean subsidiary Terremoto, has a binding option agreement to acquire the Delfin project from Delfin SA.
Subject to successfully completing 12 weeks of due diligence and gaining regulatory approvals, Mandrake Resources will acquire Atacamoz through the issue of 80 million shares and $1 million forming a loan to Atacamoz.
Under the option agreement between Terremoto and Delfin SA, Terremoto will pay Delfin a consideration US$300,000 (A$399,651) and a second cash payment of US$3.5 million. The option agreement also has a number of conditions.
Mandrake Resources Managing Director James Allchurch said the Delfin project provides the company with an “advanced high-grade copper project” in a prolific jurisdiction.
The Delfin project hosts multiple prospects with the Delfin 1 prospect being the focus of historical exploration.
Delfin 1 was subject to 15,000 metres of drilling which encountered high-grade copper mineralisation at shallow depths including 86m at 4.83 per cent copper from 121m and 27m at 7.1 per cent copper from 134m.
Outside of Delfin 1, the Delfin 2 and Cami 9 prospects represent promising targets as they show similar structural settings to Delfin 1, with rock chip samples of up to 10.17 per cent copper from Cami 9 and 3.26 per cent copper from Delfin 2.
In the June quarter, Mandrake plans to undertake an exploration program which will involve re-interpreting existing geophysical data, assessing recently submitted rock chip samples, and drilling.
“We see a clear opportunity to apply modern exploration and interpretation techniques to understand these zones and look to grow them ahead of a maiden JORC resource,” Mr Allchurch said.
“This transformational acquisition of an advanced high-grade copper project gives the company exposure to a metal with a robust supply demand thematic, driven by the global transition to a green economy.”
Company shares have soared 46.8 per cent to trade at 6.9 cents at 12:33pm AEDT.