Buxton Resources (ASX: BUX) could increase its portfolio after acquiring an option to acquire the Yalbra Graphite Project in Western Australia.
The company has the option to take up an 85% interest in the Yalbra project, where wide, high grade zones of graphite have been identified close to the surface in historical trenches and drilling.
Results from historical drilling include:
- 16.8 metres at 13.2% carbon from 15 metres, including 6.1 metres at 17.2% carbon;
- 23.5 metres at 19.5% carbon from 9 metres, including 15.2 metres at 25.2% carbon; and
- 39.6 metres at 10% carbon from 3 metres, including 12.2 metres at 23.6% carbon.
Buxton will undertake a ground electromagnetic survey to define targets for drilling.
Under the agreement, Buxton will pay $5000 to Montezuma Mining Company (ASX: MZM) in exchange for a three month option to purchase Yalbra, exercisable at any time. The option can be extended by three months for payment of a further $5000.
If Buxton proceeds with the acquisition, it will issue 1 million shares to Montezuma. Montezuma will retain a 15% free-carried interest in the project up to a decision to mine, and then can elect to contribute on a pro rata basis or dilute to a 1% gross revenue royalty.
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