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Orange Minerals (ASX:OMX) to snap up new tenements in WA

ASX News, Materials
ASX:OMX      MCAP $3.259M
10 November 2022 12:33 (AEST)

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Orange Minerals (OMX) has signed term sheets to acquire several new tenements in Western Australia.

The company signed an agreement with Mining Equities to acquire five tenement applications in WA’s Southern Cross province.

“The tenements, located in the highly prospective Youanmi area 600 kilometres northeast of Perth, are close to a number of gold, battery and base metal projects,” Managing Director David Greenwood said.

Specifically, the applications are in proximity to the Manindi lithium project and the major Youanmi gold mine.

Orange Minerals will pay Mining Equities $25,000 worth of shares at an issue price equal to its five-day volume-weighted average price (VWAP). If all tenements are granted, the company will issue the seller a further $25,000 worth of shares.

Additionally, OMX has bought three prospecting licences from Rocky Reef Mining which are 50 kilometres from Kalgoorlie and together form the Majestic project.

“The three tenements purchased in the Majestic area, east of Kalgoorlie are contiguous with and complement tenements already held by Orange and are considered to be extremely prospective for gold with a number of walk-up drill targets,” Mr Greenwood stated.

Similar to the agreement with Mining Equities, Orange will pay Rocky Reef $25,000 worth of shares at an issue price equal to the five-day VWAP prior to the date of execution.

It will also pay Rocky Reef $25,000 in cash and a 1.5 per cent net smelter royalty on any minerals extracted from the tenements.

OMX shares were up 7.46 per cent to trade at 7.2 cents at 12:23 pm AEDT.

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