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Scorpion Minerals (ASX:SCN) has seen its share price lift by an extraordinary 80% after it entered a binding farm-in and joint venture heads of agreement with E79 Exploration Pty Ltd, which will see it take a majority interest in the latter’s Jungar Flats gold project in Western Australia.
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Scorpion has the potential to earn up to 70% interest in the project – located in Western Australia’s Murchison region – by spending $3 million over five years, including a cash consideration of $100,000 and a series of milestone expenses.
Of central consideration is the fact Jungar Flats abuts Scorpion’s Pharos Project to the east – expanding the company’s Murchison footprint by 1600 square kilometres – in addition to ensuring it has a dominant position in the northern extent of the highly prospective Big Bell–Dalgaranga shear corridor.
The latter corridor has seen very little exploration, although companies like Spartan Resources (ASX: SPR) and Caprice Resources (ASX: CRS) have had success in this territory.
Alongside the JV announcement, Scorpion also said it was aiming to raise $1.5 million through the issue of 75M fully-paid ordinary shares. It has already received binding commitments from sophisticated and professional investors in that regard.
The shares would be priced at two cents each – a 33% premium to the last traded price of the company’s securities of 1.5cps.
“We are delighted to have executed this strategic agreement with E79, which now makes Scorpion the largest landholder along the highly prospective Big Bell–Dalgaranga shear corridor in the Murchison – one of the prime gold exploration jurisdictions in Australia,” CEO Michael Fotios said.
“With the Murchison region gaining recent attention due to exciting gold discoveries made by neighbouring companies such as Spartan Resources and Caprice Resources, our plans to accelerate exploration across our high grade target areas has been very well received by existing shareholders and new investors.
“We have received commitments to raise $1.5M which will fund the near-term drilling campaigns at Pharos and cover consideration payable to E79 for the HOA.”
Scorpion last traded at 2.7 cents – a rise of 80% since market open.
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