Aldoro Resources Ltd (ASX:ARN) has entered into a binding heads of agreement with Trafalgar Resources Pty Ltd for the acquisition of Trafalgar’s wholly-owned E58/555 tenement within a potential pegmatite area in the Mt Magnet region of Western Australia.
The mineral exploration and development company will pay Trafalgar $50,000 in cash and provide 275,000 shares within 10 business days following the acquisition. If precedent conditions are not met within 90 days following the execution date, any party may terminate the agreement by notice in writing.
“The acquisition of E58/555 completes the acquisition of the interpreted pegmatite corridor based on known occurrences and regional boundaries,” Aldoro Resources chairman Joshua Letcher said.
“We know the fractioned pegmatites reside in the greenstones, so the granite to the east and south is one boundary with the western boundary dictated by the layered gabbros that the pegmatites are located in.”
Investors showed their support for the acquisition, with shares rising as much as 9.25% to an intraday high of A$0.415.
Key transaction terms, shares up
This heads of agreement between Aldoro and Trafalgar is only binding if the following conditions are met:
- Completion of financial, legal and technical due diligence by Aldoro on the tenement, to the satisfaction of Aldoro;
- The parties obtaining all necessary regulatory approvals or waivers pursuant to the ASX Listing Rules, Corporations Act 2001 or any other law to allow the parties to lawfully complete the matters set out in the agreement;
- The parties obtaining all third-party approvals and consents, including the consent of the Minister responsible for the Mining Act 1978 (WA) (Mining Act) (if required), necessary to lawfully complete the matters set out in the agreement; and
- Trafalgar, Aldoro and, if necessary under the third party agreements, the relevant third party, executing a deed of assignment and assumption in relation to each third-party agreement.
Settlement will officially occur within two business days after the satisfaction or waiver of the last conditions.
About the company
Aldoro Resources holds a collection of gold, nickel and lithium focused advanced exploration projects in Western Australia. The company’s flagship project is the Narndee Igneous Complex, highly prospective for nickel-copper-platinum group elements mineralisation.
The company’s other projects include the Cathedrals Belt Nickel Project, the Leinster Nickel Project and Windimurra Igneous Complex, which holds nickel-copper-lithium-platinum group element mineralisation.
Read: Aldoro Resources returns high-grade rock chips at Narndee and Wyemandoo