Olympio Metals Ltd will begin drilling this month at its Dufay Cu-Au Project in Canada and to give the project its undivided attention, is looking to divest its remaining non-core Halls Creek Tenements.
To do so, the company has signed an Option Agreement with Clutch Group Pty Ltd for the sale of its remaining three Halls Creek tenements in the East Kimberley region of Western Australia.
Under the agreement, Clutch must meet agreed minimum expenditure commitments on exploration licences E80/5034, E80/5154, and E80/5220 during the due diligence period, which extends until June 30, 2025.
“The remaining Halls Creek tenements are considered non-core projects as we ramp up activity on our Dufay Cu-Au Project in Canada, where drilling will commence shortly. The option agreement with Clutch will ensure exploration expenditure on the ground up to June 2025 during their DD period and we wish them good luck with their work at Halls Creek,” Olympio managing director Sean Delaney said.
A couple of weeks ago, Olympio identified multiple electromagnetic (EM) anomalies at its Dasserat porphyry gold-copper drill target at Dufay. These anomalies align with a broad induced polarisation (IP) target, reinforcing the company's confidence in the project’s potential.
The primary goal of the upcpming drilling is to test for disseminated sulphide mineralisation and assess the potential for a porphyry-style system similar to Galloway.
Divesting non-core assets
Rocktivity Gold Pty Ltd, a wholly owned subsidiary of Olympio, has entered into an Option Agreement with Clutch for the potential acquisition of exploration licences E80/5034, E80/5154, and E80/5220, along with all associated data (the Tenements).
As part of the agreement, Clutch has paid Olympio an upfront exclusivity fee of $25,000 to conduct due diligence on the Tenements. The due diligence period extends until the earlier of June 30, 2025, Clutch’s confirmation of satisfactory completion, or termination of the Option Agreement under specific conditions. During this period, Clutch is responsible for maintaining the Tenements in good standing and must meet a total expenditure commitment of $80,000.
If Clutch elects to exercise the option, it will pay Olympio the following amounts:
- $100,000 for E80/5034
- $30,000 for E80/5154
- $20,000 for E80/5220
These payments will be adjusted if any of the Tenements are surrendered or expire during the due diligence period.
Upon payment of the Option Fee and execution of the sale transaction documents, Olympio’s remaining interest in the Tenements will be limited to two performance-based payments:
- $100,000 within 10 business days of defining a Measured JORC-2012 Mineral Resource of at least 50,000 ounces of gold at a minimum grade of 1.0 grams per tonne (g/t) gold.
- $100,000 within 10 business days of a Decision to Mine.