- Silver City Minerals (SCI) has entered an agreement with Syndicate Minerals to acquire a gold-copper exploration package in the Lachlan Fold Belt
- The 200 square kilometre package is located in Australia’s largest porphyry province
- It also lies just 15 kilometres south of Alkane’s world-class Boda discovery
- Additionally, the company will launch a $250,000 placement, which it has already received firm commitments for
- While it exercises its option, Silver City is conducting due diligence
- Following today’s news, company shares are up 20 per cent and trading for 1.2 cents each
Silver City Minerals (SCI) has entered a binding option agreement with Syndicate Minerals to acquire a gold-copper exploration package in the Lachlan Fold Belt.
The highly prospective tenement, ELA5852 Wellington, covers 200 square kilometres and is situated within the Wellington Project in New South Wales.
The company believes the tenement has the potential to host porphyry copper-gold mineralisation similar to that of Newcrest’s Cadia-Ridgeway and Alkane’s Boda discovery, both of which are in the same region.
To kickstart development, Silver City has begun a process of geological due diligence and data compilation to assess the prospectivity of the tenure.
In consideration of the option agreement, Silver City will issue Syndicate Minerals 15,000,000 fully paid ordinary shares and 7,500,000 options to acquire shares at $0.02 before October 31 2022.
The company will also grant Syndicate a 1.5 per cent net smelter return royalty for all materials produced from ELA5852 Wellington.
To exercise the option, the company will need to complete a minimum $200,000 capital raise and receive all necessary approvals for the issue of consideration securities.
Additionally, Silver City will need to reimburse Syndicate $10,000 for the bond paid in respect of the tenement.
Silver City has also received firm commitments from sophisticated and professional investors for a $250,000 placement. Participants will subscribe for 25 million shares at $0.01 per share.
Silver City Minerals is up 20 per cent and shares are trading for 1.2 cents each at 11:29 am AEDT.