Midas Minerals Ltd (ASX: MM1) has announced the signing of an option agreement with Tojo Resources Pty Ltd, a subsidiary of Carnavale Resources Ltd (ASX:CAV) over the Barracuda PGE-Ni-Cu project comprising 48km2, E58/551 in Western Australia.
The option over E58/551 will provide Midas the opportunity of exploring the entire Wondinong PGE target zone, identified by Midas at its Challa Project.
Prior exploration in the 1980s reported anomalous platinum, palladium and rhodium over an area extending for 17km strike (five km within E58/551) over the large WindimurraIgneous Complex (WIC).
Ongoing exploration by Midas at Challa identified strong PGE and base metal geochemical anomalies and VTEM geophysical anomalies.
It is good to have secured the entire Wondinong PGE target zone prior to the commencement of planned drilling at Challa later this year,” Midas Managing Director, Mark Calderwood, said.
“Midas’s ongoing exploration at Challa has focused on infill geochemical sampling and prioritisation of 2021 VTEM geophysical anomalies.
“Midas will extend its geochemical sampling over E58/551 with the aim to better define drill targets over known PGE mineralisation at Wondinong.”
Option Agreement Terms
Midas has entered into a binding Heads of Agreement pursuant to which it can acquire exploration licence E58/551, held by Tojo Resources Pty Ltd, a subsidiary of CAV.
Material Terms and Conditions of the Option Agreement are as follows:
- Midas will pay $20,000 for the initial 12-month option period;
- Midas will pay a further $20,000 on the first and second anniversary, if it elects to extend the option term;
- Exercise of the option is conditional on completion of due diligence on E58/551 to the satisfaction of Midas and obtaining all other necessary third-party consents and approvals (including in relation to the existing royalty related to E58/551);
- Midas can exercise the option with payment of $300,000, which Midas can elect to satisfy in Midas shares at a deemed issue price of the five-trading day volume weighted average price of Midas shares immediately prior to the exercise of the option
- Midas will pay a further $500,000 on completing a JORC compliant mineral resource within the tenement area;
- CAV will receive a 0.5% NSR and Midas will assume responsibility for an existing 0.5% NSR to third parties; and
- Midas can withdraw at any time after the initial option fee is paid.
