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Rimfire Pacific Mining (ASX:RIM) has told shareholders it wants to place more of its focus on scandium – a high-demand commodity which it is exploring at the Fifield District assets in New South Wales, where it has an earn-in agreement with joint venture partner Golden Plain Resources.
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The company has elected to divest its Cowal copper gold project in the same state through an option to purchase agreement with Copper Search.
Cowal comprises three tenements – EL8329, EL8804, and EL9397 – and Copper Search (through subsidiary Altitude Gold) has a right of first refusal to purchase the first of these.
It has now been granted (subject to waiver by Sandfire) an exclusive six-month period to complete due diligence with a view to the company buying Cowal, with an option fee of $50,000 cash to be paid to Rimfire.
Copper Search will be able to extend the option period for up to three months – for a price of $10,000 cash per month – and will ultimately be able to complete the project purchase by paying $200,000 cash.
(There’s potential for this to comprise up to 50% Copper Search shares.)
Achievement of a JORC mineral resource estimate on any tenement will yield another payment of $200K to Rimfire within 30 days of the MRE announcement. Then, $250K would also be payable if Copper Search produced 50,000 ounces of gold or an equivalent value from minerals within the tenements.
“It is pleasing to execute the Cowal Option… with Copper Search and their highly experienced technical team,” Rimfire’s MD, David Hutton, said.
This, he continued, will now enable the company to place more of its focus on scandium.
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Mr Hutton continued: “The execution… sharpens Rimfire’s focus on building a critical mass of scandium within the Fifield District – Australia’s scandium epicentre as efficiently and quickly as possible.
“This work is taking place at a time when global supply of this strategically important critical mineral is being threatened by the recent Chinese restrictions on scandium exports.”
RIM has been trading at 2.1 cents.
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