- Santa Fe Minerals (SFM) enters an option agreement to purchase the Mt Murray nickel, lead and zinc project in Western Australia
- Mt Murray covers an area of 29 square kilometres and is located 95 kilometres south-east of Onslow
- The project includes two granted exploration licences and the metals rights over an existing mining licence
- Santa Fe will have until November 19, 2023, to decide if it wants to go through with the option agreement
- At market close this week, Santa Fe was up 23.6 per cent to 11 cents per share
Santa Fe Minerals (SFM) has entered into an option agreement to purchase the Mt Murray nickel, lead and zinc project.
The project includes two granted exploration licences and the metals rights over an exisiting mining licence.
Mt Murray covers an area of 29 square kilometres and is located 95 kilometres south-east of Onslow in the Ashburton region of Western Australia.
The project is opposite a magnetic high zone considered to represent a mafic-ultramafic intrusive package that could have potential nickel, copper and platinum group elements (PGE) mineralisation.
Santa Fe has paid $50,000 for the option agreement, which is due to expire on November 19, 2023.
Additionally, Santa Fe will also spend at least $500,000 on exploration acitivites on the tenements.
If the deal goes ahead, Santa FE will then issue North West Stone (NWS) five million shares or $1 million worth.
Notably, this deal is for 80 per cent of the project, with NWS keeping the remaining 20 per cent.
“If the option is exercised, the parties shall commence good faith negotiations with a view to executing a joint venture agreement for the development of the tenements Challa has an interest in, with Challa as manager and operator of the joint venture,” the company said.
“NWS will be free carried until a decision to mine.”
At market close this week, Santa Fe was up 23.6 per cent to 11 cents per share.