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Sabre Resources (ASX:SBR) picks up suite of projects in 80pc acquisition of Chalco Resources

ASX News, Materials
ASX:SBR      MCAP $7.111M
07 February 2022 12:38 (AEST)

Drilling at one of Sabre Resources' projects in WA. Source: Sabre Resources

Sabre Resources (SBR) has picked up a handful of “highly prospective” nickel, uranium and base metals projects in Western Australia and the Northern Territory after completing the purchase of 80 per cent of Chalco Resources.

Sabre said the acquisition provides it with further exposure to prospective nickel sulphide corridors in the Nepean South-Cave Hill region near Coolgardie in Western Australia.

It will also take over uranium tenement applications in the Ngalia Basin as well as a granted tenement at the junction of the Tennant East copper-gold belt and Lawn Hill Platform silver-lead-zinc area in the Northern Territory.

“Sabre is now well placed to become a key nickel sulphide player and take advantage of the demand for nickel as a key component of lithium-ion batteries for the EV (electric vehicle) industry,” CEO Jon Dugdale said.

Under the Chalco sale agreement, Sabre issued 342 million shares and paid $85,000 cash to the vendor, James Del Piano.

A further 125 million Sabre shares may be issued to the vendor based on certain performance milestones being achieved.

Sabre will fund all costs incurred in connection with the new landholdings until such time as a definitive feasibility study is completed for any one of Chalco’s tenements and a decision to mine is made.

SBR shares were steady at 0.5 cents at 12:29 pm AEDT.

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