The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

Battery minerals explorer Firetail Resources (ASX:FTL) has been given an option by York Harbour (TSXV: YORK) to acquire an 80 percent interest in its York Harbour Copper-Zinc-Silver Project in Newfoundland, Canada.

This project comprises six mineral licenses and 189 mineral claims, covering an area of 47.25 square kilometres. The mine has a history of production totalling 100,000 tonnes mined at 3-12% copper, 7% zinc and 1-3 ounces of silver between 1898 and 1913 in a jurisdiction with a global reputation as being miner friendly.

The agreement makes provision for an existing 0.5 per cent net smelter royalty and another 2 per cent net smelter royalty that Firetail will grant to York Harbour for a transaction that is contingent upon the necessary consents and approvals, including approval from the TSX Venture Exchange, as well as meeting customary closing conditions.

York Harbour said in a media release this week that it anticipates finalising the transaction within the next few weeks.

Firetail has a three-year period to exercise the option, which entails a total consideration of AU$498,570 and the completion of 10km of drilling on the York Harbour Project.

Firetail said this week that it would propose a future capital raising targeting ~$AU1,570.000 at a price of $0.04 to facilitate the arrangements. The structure of the capital raise is yet to be determined but is intended to comprise: An $893,000 placement via the issue of 22,325,000 shares, a $595,622 entitlement on the basis of 1 new FTL share for every 10 existing FTL shares held and an $80,000 placement to FTL executive chair Brett Grosvenor.

“We believe that Firetail’s proven board and management team, alongside their seasoned technical team, are the right group to partner with us to move the York Harbour project forward as quickly as possible,” said Blair Naughty, York Harbour Metals president and chief executive, in a news release. “We look forward to becoming shareholders of Firetail which will also provide us upside value on their other two high-profile projects.”

A joint venture between the two companies will be formed after the option is fully exercised, or if it is terminated after at least a 49 per cent interest is exercised in the project.

FTL last traded at 9.2 cents.

FTL by the numbers
More From The Market Online
The Market Online Video

ASX Market Close: Consumer Discretionary rises ahead of interest rates decision | June 14, 2024

The ASX200 is down a third of a per cent to close the week. All sectors…
The Market Online Video

ASX Market Update: ASX slips 0.3%, Discretionary is the only sector to rise | 14 June, 2024

The ASX200 is trading down around 0.3%. The discretionary sector has made gains of 0.3%, all…

Week 24 Wrap: US contagion sentiment not so contagious; iron ore remains pressured

It was, overall, a lacklustre week for the ASX. We only saw one green day on…
The Market Online Video

Geology is King: Sun Silver says Maverick Springs will outshine high-grade Australian mines

Sun Silver Ltd (ASX:SS1) is seeking gold, silver and pathfinder elements at their Maverick Springs project…