Broken Hill Prospecting Ltd’s (ASX:BPL) application for three exploration licences in the Broken Hill region is consistent with its strategy of diversifying the group’s business.
While this involves multi-commodity exposure, the group remains focused on the Broken Hill region, and granting of these applications would increase its exposure to the area.
From a broader perspective, the company is looking to secure a number of under-explored base, precious and industrial mineral prospects.
Management expects the applications to be granted during the first quarter of 2018.
Licences mainly prospective for base metals
The Broken Hill NW and Main Line licences are viewed as prospective for base metals, with the latter having been explored for copper in the past.
The Triple Chance licence application region is 25 kilometres from Broken Hill, and should the licence be granted, the company will be targeting base and precious metals.
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Trangie Johnston, managing director, said: “We want a larger footprint in the world-class Broken Hill Region.
“We aim to advance our vision that modern exploration techniques and fresh eyes, such as those that are being used at the Thackaringa Cobalt Project, will provide new rewards for shareholders."
Acquisition of new tenements will not require capital raising
Broken Hill Prospecting has sufficient cash to acquire the licenses and conduct the required work, negating the need for a dilutive capital raising.
The company’s other assets include the advanced stage Murray Basin heavy mineral sands project and exposure to the Thackaringa Cobalt Project in joint venture with Cobalt Blue (ASX:COB).