Helix Resources Ltd (ASX:HLX) has entered into conditional binding letter agreements to acquire 51% of a portfolio of copper projects in the Byrah Basin in Western Australia, in a joint venture agreement with the right to earn up to a 90% interest in the projects.
The area was host to the DeGrussa copper mine, operated by Sandfire Resources, which produced almost 900,000 tonnes of copper equivalent metal at a grade of about 7%.
This acquisition includes the Doolgunna and DeGrussa West tenements, host to a 1-kilometre-long copper-bearing gossan at surface.
The tenements also hold a further 12 kilometres of prospective geological sequences, confirmed with copper intersections from drilling, just 18 kilometres along strike from the DeGrussa Mine.
Prospective copper region
“These transactions are part of our strategy to diversify and expand our copper exploration footprint into the Bryah Basin,” Helix Resources managing director Kylie Prendergast said.
“The acquisition consolidates key landholdings within one of the most prospective copper regions in Australia and positions Helix for significant exploration upside.
“With copper and zinc mineralisation already identified in surface samples and geophysical surveys, we believe the Bryah Basin projects represent an outstanding opportunity for Helix.
“The staged earn-in structure provides us with a clear path to increasing our interest in these projects as exploration advances.
“The successful completion of this acquisition is contingent on shareholder support in favour of maintaining the current board and supporting the company’s growth strategy at the upcoming AGM, and we strongly encourage shareholders to vote accordingly.
“Uncertainty around this transaction is yet another example of Acta’s highly conditional offer hampering the company’s ability to operate effectively and continue to develop exciting copper-gold exploration opportunities.”
Bryah Basin Helix tenements, geology, mineral deposits and occurrences.
The acquisitions are subject to a ‘no change of control’ vote for the Helix board at the annual general meeting, scheduled for November 19.
“Exciting opportunity” to build value
“The board and management remain entirely focused on building long-term value for our shareholders and we are confident this acquisition will play a key role in that growth,” Prendergast continued.
“We look forward to progressing this exciting opportunity and continuing to unlock the potential of our copper portfolio.”
A recent re-interpretation of regional geology by Helix and others has identified the same geological sequence that hosts the DeGrussa mine across all tenements within the 320-square-kilometre land holding.
The company intends to apply its multi-disciplinary exploration approach to explore for volcanogenic massive sulphide (VMS) copper and gold deposits.
Helix identified the projects as an opportunity to diversify its copper strategy early this year, viewing them as a complementary acquisition to HLX’s existing copper assets in the Cobar region of NSW and an opportunity to leverage its seasoned exploration team to develop focused, cost-effective exploration programs.