Blaze International Limited (ASX:BLZ) is acquiring Hammerhead Exploration Pty Ltd and Iconic Minerals Pty Ltd who collectively own six tenement applications in the Earaheedy Basin of Western Australia.
These tenements cover the immediate northern and western strike extension of the recent zinc-lead discovery by Rumble Resources Ltd (ASX:RTR).
The company has signed separate and unrelated conditional share sale agreements to acquire each of Hammerhead and Iconic Minerals.
Collective tenure applied for covers strike of more than 40 kilometres of the prospective unconformity between the overlying Frere Iron Formation and the underlying Yelma Formation and is supported by airborne geophysics and historical WAMEX data.
Three of the tenement applications were lodged last year before the RTR discovery allowing the vendors to “pick the eyes out” of the prospective tenure in the Earaheedy Basin.
“Wonderful addition to portfolio”
Blaze International technical director Simon Coxhell said: “The tenements subject to acquisition by Blaze have been carefully and geologically targeted on the most prospective units within the Earaheedy Basin.
“The opportunity to explore and develop these highly prospective areas represents a wonderful addition to the Blaze tenement portfolio.”
The acquisition includes an additional tenement application for Big Bell South which covers a 3-kilometre-long magnetic feature, south of the Big Bell gold mine where sampling has returned up to 0.17 g/t gold within BIF.
Placement offer
The company has received firm commitments from investors to raise $1.5 million through a placement for exploration and development of these new tenements and to advance the ongoing exploration of the company’s existing exploration assets.
Blaze plans to settle the placement in two tranches with tranche 1 to issue 50 million shares pursuant to the company’s existing capacity under ASX Listing Rule 7.1.
Similarly, tranche 2 will see the issuance of the 25 million free attaching options and will be subject to shareholder approval.
Funds raised will be used in the exploration and development of the tenements acquired under the respective share sale agreements alongside ongoing exploration of the company’s existing exploration assets.
The company has appointed CPS Capital Limited as the lead manager of the placement.