- Odin Metals (ODM) has signed an agreement with Ausmon Resources (AOA) to acquire the Grasmere copper deposit in New South Wales
- The deposit sits within Odin’s Koonenberry Project, which covers around 150 kilometres of strike in the under-explored Koonenberry Copper Belt
- Grasmere is said to be the largest copper-rich massive sulphide zone identified to date in western New South Wales
- Consideration for the proposed acquisition includes the issue of 15 million fully paid ordinary shares escrowed for 12 months and $100,000, subject to conditions
- Odin is organising an aeromagnetic survey of the area and has started plans for regional and follow-up drilling
- A general meeting is scheduled for Thursday to obtain shareholder approval
- Odin shares are 13.3 per cent higher at 3.4 cents each and Ausmon is 10 per cent higher at 1.1 cents each
Odin Metals (ODM) has signed an agreement with Ausmon Resources (AOA) to acquire the Grasmere copper deposit in New South Wales.
Through a binding purchase agreement, Odin is set to take on 100 per cent of Ausmon’s wholly owned subsidiary, Great Western Minerals (GWM), the key asset of which is Exploration Licence 6400, which hosts the Grasmere Copper volcanogenic massive sulfide (VMS) deposit.
The deposit sits within Odin’s Koonenberry Project. It was the only outlier of the 2600 square kilometre project, which covers around 150 kilometres of strike of the under-explored Koonenberry Copper Belt.
Grasmere is said to be the largest copper-rich massive sulphide zone identified to date in western New South Wales.
An activities report in June 2020 by Ausmon showed that Grasmere contains a JORC-compliant indicated and inferred mineral resource estimate totalling 5.75 million tonnes at 1.03 per cent copper, 0.35 per cent zinc, 0.05 grams per tonne (g/t) gold and 2.3 g/t silver.
Consideration for the proposed acquisition includes Odin issuing 15 million fully paid ordinary shares to Ausman at completion. These shares will be escrowed for twelve months from the date of completion.
Completion of the proposed acquisition is subject to a number of conditions to be carried out within six months from execution.
Key conditions include approval by the Minister under NSW’s Mining Act, Odin conducting due diligence to its satisfaction, acting reasonably on GWM’s corporate matters, business, assets and operations, and Odin obtaining all necessary shareholder approvals.
A general meeting is scheduled for Thursday, to obtain shareholder approval. Following which, Odin will have cash reserves of $4 million and market cap of around $12 million.
At the deposit, Odin is planning to digitally compile data from historic works, which it says already underway.
The company is also preparing a detailed modern HeliTEM2 airborne electromagnetic survey over an area of 1150 square kilometres, planned for some time this month.
There are also plans in place to commence drilling at the prospect, including regional and follow-up drilling along strike,at Grasmere North and at Cymbric Vale, in the third quarter of this year.
Odin shares are 13.3 per cent higher at 3.4 cents each and Ausmon is 10 per cent higher at 1.1 cents each at 12:51pm AEDT.