Cyclone Metals Ltd (ASX:CLE) has completed the acquisition of Grand Port Resources Pty Ltd which owns or has applications over a diversified portfolio of gold, copper, nickel and PGE (platinum group elements) assets in New Zealand.
The company has also raised A$500,000 through a placement of shares to sophisticated investors at an issue price of A$0.005.
Funds raised from the placement will be applied toward the acquisition and initial work on the Grand Port projects and for general working capital.
“Impressive portfolio of brownfield precious and base metal assets”
Cyclone executive director Tony Sage said last month: “Grand Port owns an impressive portfolio of brownfield precious and base metal assets in New Zealand, which we believe, we can add significant value through our hands on approach and strong contacts in-country.
“Other ASX companies are experiencing success in New Zealand and we look forward to developing these assets in the coming months to realise value for Cyclone’s shareholders.”
Project portfolio
Grand Port’s projects covering 1,140 square kilometres are all either near operating mines and facilities, or other resources companies.
The projects are: Macraes South, Muirs, Mareburn, Longwood Range, Waikerikeri and Drybread, and all are considered underexplored by modern exploration methods.
Cyclone is planning to undertake a maiden JORC compliant mineral resource estimate at Muirs and commence first-pass drilling at Muirs and Mareburn.
In addition to the current projects, Grand Port will also make applications for lithium projects in New Zealand to further diversify the portfolio with this strategic mineral.
Placement details
Cyclone’s A$500,000 placement includes one free attaching option for every four shares subscribed for at an exercise price of A$0.006 expiring 31 March 2024.
The placement includes a firm commitment from Cyclone director Will Scott to subscribe for 10,000,000 placement shares to raise funds of A$50,000.