Okapi Resources Ltd (ASX:OKR) (FRA:26O) has signed an agreement to acquire Bulk Mineral Holdings Pty Ltd, which holds two granted exploration licenses in Western Australia and four exploration licence applications in South Australia, with a total land package of around 2,127 kilometres.
The two granted exploration licences are near Kojonup, WA, are known as the Holly Kaolin Project, where recent site visits confirmed widespread outcropping Kaolin mineralisation.
The package includes four exploration licence applications prospective for heavy mineral sands and high purity halloysite on the western Eyre Peninsula in South Australia bordering Andromeda Metals Ltd’s (ASX:ADN) Camel Lake Project and neighbouring Mt Hope deposit.
Exciting new chapter
Okapi’s executive director David Nour said: “The board of Okapi is excited to embark on this exciting new chapter for the company.
“This acquisition puts Okapi in a highly prospective ground in the heart of major known kaolin halloysite deposits neighbouring the likes of Andromeda.
“Additionally, historical drill results show the potential of the Holly Kaolin Project in which we will commence exploration work immediately to confirm the quality of the project.
“With the fast-moving technological advances in kaolin halloysite, the potential application extends beyond traditional uses to now include batteries and supercapacitors, hydrogen storage and construction.
“We are also excited about Okapi’s upcoming drilling campaign at our Enmore Gold Project, where we aim to drill an initial 8-12 holes to confirm further gold mineralisation.”
White Knight Kaolin-Halloysite Project
The White Knight Kaolin-Halloysite Project comprises four exploration licence applications that span over 1,943 square kilometres in western and southern South Australia.
At Camel Lake, white, translucent clay with occasional patches of reddish-purple iron oxides are present below the thin gypsum cover.
Halloysite makes up between 9 to 72% of the clay sediment and the electron microscopy of raw samples show the halloysite crystallised as regular tubules showing a high degree of alignment.
The halloysite occurrence at Camel Lake is high grade and appears to be several metres in thickness.
Regional Geology of the Holly Kaolin Project
Bedrock throughout the Project area consists of Archaean coarse-grained porphyritic granite and adamellite, and leucocratic granofels of granitic ad mellitic composition.
Outcropping kaolin mineralisation is present along Nookanellup and Warren up Roads, and these areas have been deeply weathered, forming an intensely leached kaolinised zone.
Zones with high iron content mapped as a lateritic duricrust, which forms a relict cap over the top of the kaolinised zones are commonly associated with high topographic features.
Acquisition details
Okapi has entered into a binding head of agreement setting out the terms and conditions upon which it will acquire Bulk Mineral.
Bulk Mineral is the sole shareholder of five subsidiaries which, together, hold two granted exploration tenements in the Holly Kaolin Project and has applied for four exploration licence in the White Knight Kaolin-Halloysite Project.
The company will satisfy the $1.49 million consideration with the issue of 7.1 million ordinary Okapi shares at a deemed price of $0.21 after receiving Okapi’s shareholders’ approval.
The vendors to the transaction are Seattle Capital Pty Ltd ATF Seattle Trust and Snowball Capital Investments Pty Ltd ATF Augustus Family Trust (Vendors), neither of whom are related parties of Okapi.
The transaction will be completed in two stages:
- The issue of 4,600,000 Okapi shares to the vendors; and
- The Issue of 2,500,000 Okapi shares to the vendors following the successful grant of the four tenements -White Knight Kaolin-Halloysite Project.
After completing stage 1, a joint venture between Okapi, the vendors and the relevant subsidiaries will be established concerning the Holly Kaolin Project and subject to completion of stage 2, between Okapi, the vendor's subsidiaries will be established in relation to the White Knight Project.
The vendors will incorporate a new entity for participation in the JV for exploration of the projects after which Okapi will hold 80% in the JVs and 20% will be held by Newco.
Okapi would continue as the manager of the JV and the parties will contribute to the JV according to their respective shares.
Board and management changes
The company has appointed David Nour and Leonard Math as executive directors.
Nour has been Okapi’s non-executive director since November 2019, and is also a substantial shareholder of the company with 6.95% shares.
Leonard Math is a chartered accountant with more than 15 years of resources industry experience and he has previously worked as an auditor at Deloitte.
Fundraising initiatives
Okapi has received firm commitments from sophisticated and professional investors to raise a total of $700,000 through a placement of shares.
The funds raised will fund the acquisition of the White Knight Project and the Holly Kaolin Project, exploration on the Kaolin/Halloysite projects and be used as general working capital.