Alligator Energy Ltd (ASX:AGE) has secured a 12-month option to acquire 100% of the Piedmont Nickel-Cobalt Project in northern Italy from Chris Reindler and Partners (CRP).
If the option is exercised, the resources stock is set to pick up full interest in any exploration licences making up the Piedmont project that it does not currently own.
Alligator will pay a $75,000 option fee, and if the option is exercised, a purchase consideration of $350,000 (in a mix of cash and shares) and a 1% net smelter royalty on any future production from the Laghetto exploration licence.
The company hopes consolidating its interest in the Piedmont project will help progress discussions with strategic investors.
Alligator intends to complete ground electromagnetics and drone magnetic geophysics surveys during the European summer, which falls within the option period.
Two key ingredients for EV industry
Speaking to the deal, Alligator Energy CEO Greg Hall said: “We are pleased that Alligator has made significant progress in consolidating the company’s interest in the Piedmont Project, morthern Italy, which we believe will be supportive in discussions with strategic investors, one of whom has recently visited Piedmont.
“We intend to run geophysics campaigns during the 12-month option period, to provide interested strategic investors with a broader data set, enhance the prospectivity of the licenses and better inform their investment decision. The Laghetto EL is also approved for a drilling program.
“Europe has overtaken China as the largest market for electric vehicles and the EU is highly focused on securing reliable, ethical, supply chains for the key inputs for EV batteries such as nickel and cobalt.
“To improve the resilience of supply chains, the EU is applying a policy mix that aims to increase domestic capacity and diversify suppliers.
“In this environment, our Piedmont Project offers strategic investors the dual benefits of prospectivity for two key inputs for these supply chains, as well as a location in a tier-one jurisdiction that is in close proximity to key markets, and with the scope to produce ethically and sustainably.”
Next steps
Alligator continues to plan ground EM and drone magnetic geophysics surveys over a number of the Piedmont Project licences.
With internal board approvals in place to undertake these operations during 2022, contractor negotiations and program designs are underway, and an initial site visit was conducted by potential contractors in late 2021.
The planned surveys are expected to provide further evidence of Piedmont’s prospectivity to assist in further discussions with interested strategic investors.
In addition to securing an option over the CRP Exploration Licences, a field trip will take place in the first quarter of 2022, using Alligator’s in-country team.
From here, the crew will map and sample lower altitude sites at the Isola prospect, where a new forestry road has revealed fresh exposures with evidence of disseminated sulphides.
The Isola prospect is on Alligator’s 100%-held Sella Basa exploration licence (currently in application).