PERTH (miningweekly.com) – ASX-listed Carbine Resources has struck a deal to acquire a silica sands project, in Western Australia, from Down South Silica (DSS).
The exploration project covers 5 800 ha and offers Carbine an opportunity for near-term development, with significant growth potential as the company continues to advance its own Muchea project.
“This acquisition complements the company’s existing strategy and fits well with its existing plans at its Muchea project. The Silica Sands project offers Carbine potential access to near-term development whilst it continues to develop its exciting large-scale Muchea project,” said Carbine MD Peter Batten.
“Our goal through undertaking this acquisition is to secure the potential for an earlier stage production and subsequent cashflow scenario with the object of self-funding the development of the Muchea project.
“Historical exploration has resulted in identifying the locations for potential resources and provided information regarding grades at these locations. Previous resource calculations are not reportable, however, they provide valuable data for Carbine to build on. Discussions with landowners regarding access for exploration and support of potential mining operations convinced Carbine of the potential of the tenement.”
Under the terms of the agreement, Carbine will issue DSS more than 71.9-million shares in the company, which will be subject to a 12-month voluntary escrow period, and will grant the vendor a 1% net smelter royalty over all minerals extracted from the tenements.