Carnavale Resources Limited (ASX:CAV) (FRA:YBB) has agreed to acquire 100% of the Barracuda Platinum-Palladium-Nickel-Copper Project, around 60 kilometres east of the gold mining town of Mt Magnet in Western Australia.
The Barracuda project is in the fertile Windimurra mafic-ultramafic igneous complex in the Murchison district.
Outcropping mineralisation on the contact between mafic (gabbroic) and olivine-rich ultramafic rocks has previously assayed up to 8.27 g/t PGE while PGE-sulphide minerals have been identified by the WA Geological Survey within the project area.
The company is also raising up to $2.2 million through a placement with funds used to acquire the project, fund initial exploration and for ongoing and planned exploration programs at existing projects.
New project “a great fit”
CAV chairman Ron Gajewski said: “We are delighted to have been able to acquire a new platinum, palladium, nickel, copper exploration project in Western Australia with high-grade PGE mineralisation identified at surface.
“The company will now contract an airborne electromagnetic survey, to be followed swiftly by ground EM and analysis of the geochemistry to identify drill targets as soon as possible.
“This new project is a great fit with our existing exploration opportunities in nickel and gold.”
Barracuda project
Outcropping mineralisation assaying 8.27 g/t PGE was discovered at the project by Pancontinental Mining Ltd in 1987 on the contact between mafic and olivine-rich ultramafic rocks.
The project is largely unexplored with only 1,811 metres of drilling completed by Pancon and no drilling since 1988.
Neither ground electromagnetic (EM) or Induced Polarisation (IP) geophysical surveys have ever been conducted.
Subsequently, PGE-sulphide minerals were identified in the rocks by the Western Australia Geological Survey in 2016.
CAV intends to apply the latest airborne EM technology to delineate conductors for drill testing.
Exploration strategy
CAV intends to undertake initial fieldwork at the Barracuda project as soon as possible.
The proposed program includes;
- Fly the project area with airborne EM. This was used by Chalice Mining Ltd (ASX:CHN) to define the Julimar PGE-nickel-copper-cobalt-gold discovery;
- Digitally capture the Pancontinental soil geochemistry and contour the PGE, nickel and copper data to define metal-anomalous trends;
- Follow-up airborne EM anomalies with ground EM, with priority given to areas with established, coincident PGE-copper-nickel soil anomalism; and
- Drill-test targets subject to results.
Acquisition terms
CAV has agreed to acquire 100% of E58/551, from Corporate & Resource Consultants Pty and Bruce Legendre.
The company has paid a $10,000 non-refundable deposit, with the balance of $40,000 in cash and 20 million fully paid ordinary shares in CAV payable at settlement to the vendors.
Settlement will occur five business days after Ministerial consent has been granted for the transfer and the vendors have transferred the title of E58/551 to CAV.
CAV will also grant the vendors a 0.5% net smelter return (NSR) royalty on minerals produced from the tenement.
Capital raising
The company has received commitments from high net worth overseas, sophisticated and professional investors for a placement to raise $2.1 million.
CAV proposes to issue 300 million shares at an issue price of $0.007 per share, together with 150 million free attaching options exercisable at $0.01 on or before July 31, 2022.
Golden Triangle Capital Pty Ltd has been appointed as lead manager for the placement.
Funds raised will be used to acquire the project, fund the initial exploration program, fund ongoing and planned exploration programs at the company’s existing projects and provide working capital.
The placement is scheduled to close on or around March 16, 2021, and 150 million free attaching options will be issued to the participants of the placement subject to shareholder approval, at a general meeting of shareholders scheduled for May 2021.
Director participation
Chairman Gajewski has committed to subscribe for 15 million new ordinary shares and 7.5 million attaching options totalling $105,000 and director Andrew Beckwith has committed to subscribe for 3 million new ordinary shares and 1.5 million attaching options totalling $21,000.
If approved by shareholders, this will take total placement proceeds to in excess of $2.2 million.
All new shares issued pursuant to the placement will rank equally with existing fully paid ordinary shares in the company.
Shares have been as much as 25% higher intra-day to 1 cent.