- Trek Metals (TKM) reaches an agreement with Pilgangoora Operations (POPL) to acquire a new tenement next to its Pincunah project in Western Australia for $300,000
- The company will acquire a 100 per cent interest in the E45/4640 tenement which is prospective for gold and base metals
- It is near significant established gold and base metals deposits as well as Trek’s emerging Valley of the Gossans VMS discovery
- Payment will be made in TKM shares, with net smelter royalty of 2.5 per cent also applying
- Shares were trading eight per cent higher at 8.1 cents each at 12:28 pm AEST
Trek Metals (TKM) has reached an agreement with Pilgangoora Operations (POPL) to acquire a new tenement next to its Pincunah project in Western Australia for $300,000.
The company will acquire a 100 per cent interest in the E45/4640 tenement which is prospective for gold and base metals.
It is near significant established gold and base metals deposits as well as its emerging Valley of the Gossans VMS discovery.
It covers an area of 25.3 square kilometres and has several prospective northwest trending structures, which cross-cut mafic and ultramafic rocks.
Payment will be made in TKM shares, with a 2.5 per cent net smelter royalty also applying.
The acquisition is conditional on completion of due diligence by Trek, POPL obtaining a release of the tenement from its security package, the parties entering a formal minerals rights agreement, and necessary third party and regulatory approvals.
Executive Director John Young said the acquisition presents a low risk and low cost opportunity for the company.
“The agreement will give us the opportunity to evaluate the mineral potential within this
tenement, which lies in close proximity to our existing Pincunah Gold & Base Metal Project and offers highly prospective geology for new discoveries,” he said.
“This agreement with Pilbara Minerals is structured in a way that provides the opportunity to complete additional exploration and fieldwork to confirm this potential with no upfront cash outlay.”
Shares were trading eight per cent higher at 8.1 cents each at 12:28 pm AEST.