Minerals 260 (ASX:MI6) to buy eMetals’ (ASX:EMT) Nardoo project for $2.1m

• Minerals 260 (MI6) signs a $2.1 million agreement to buy the “highly-prospective” Nardoo project in Western Australia from eMetals (EMT)
• Under the deal, MI6 will issue eMetals seven million shares at 30 cents per share in return for the lithium-rare earths project
• The all-scrip arrangement will give EMT a 3.1 per cent shareholding in MI6 once all shares have been issued
• The Nardoo project comprises seven exploration licenses covering a 789-square-kilometre area in WA’s Gascoyne Province
• Shares in MI6 last traded at 32 cents on Monday afternoon, and shares in EMT last traded at one cent

Minerals 260 (MI6) has signed a $2.1 million agreement to acquire the Nardoo lithium-rare earth element (REE) project in Western Australia from eMetals (EMT).

Under today’s deal, MI6 will issue eMetals seven million shares at 30 cents per share in return for the project, which lies in WA’s Gascoyne region. This will give eMetals a 3.1 per cent shareholding in MI6 once all shares have been issued.

The closing of this acquisition is still contingent on the execution of a deed of assignment regarding an underlying royalty on one of the tenements.

The agreement is being completed through MI6’s subsidiary, ERL, and eMetals subsidiaries RWG Minerals and Iron Clad Prospecting. These subsidiaries are the current tenement holders for the project.

The Nardoo lithium and rare earth element (REE) project comprises seven exploration licenses covering a 789-square-kilometre area in the Gascoyne Province.

Historically, this area has been explored for gold, base metals, tungsten, and uranium. However, recent nearby work has given MI6 reason to believe the project is economically viable for lithium and REE deposits.

“The deal is consistent with [MI6’s] philosophy of targeting under-explored areas, previously considered less fashionable, with the potential to discover truly world-class mineral deposits,” MI6 Managing Director David Richards said.

MI6 said it would complete a detailed review of previous exploration data to help define targets for drill testing.

The company said its stable cash position would allow it to progress with this new project while also maintaining momentum at its key asset, the Moora/Koojan project in the WA Julimar region.

Shares in MI6 last traded at 32 cents on Monday afternoon, and shares in EMT last traded at one cent.