CuFe Ltd (ASX:CUF)’s deal with Gecko Mining Company Pty Ltdto secure a 60% interest in the Tennant Creek Project in the Northern Territory is subject to a change in terms.
The acquisition gives CuFe increased exposure to gold and copper at a time when copper is highly sought after as a battery-related metal.
Under the terms of the original agreement, detailed in September last year, consideration included a deferred cash payment of $2 million, payable six months from completion.
The new terms will see CuFe make a cash down-payment of $1 million today, with the remainder delivered via a mix of shares and cash by July 1.
New terms of the agreement
The parties have agreed to vary the agreement so that this amount is payable as follows:
- $1 million payable in cash 8 April 2022;
- $500,000 to be settled via the issue of 12.5 million ordinary shares at $0.04 each on April 11, 2022; and
- $500,000 payable in cash on July 1, 2022.
The shares will be issued under the company’s capacity pursuant to Listing Rule 7.1.
About Tennant Creek
The Tennant Creek package covers 240 square kilometres in the highly prospective Gecko-Goanna copper-gold corridor, which has historically produced more than 5.5 million ounces of gold at 19.3 g/t and 488,000 tonnes of copper at 2.9%.
Tennant Creek has existing JORC 2004 resources and is therefore already considered a ‘mature’ copper-gold asset.
CuFe plans to focus initially on open-pit copper/gold early cash flow opportunity in the Orlando pit, which has significant exploration potential, and follow up on targets identified for early drilling.
About CuFe
CuFe is an emerging copper and iron ore company. The company’s strategy is to focus on near-term, high-grade premium-product iron ore projects and maintain exposure to strategic metals.
CuFe has interests in various projects and tenements prospective for iron ore, copper and gold, all located in Australia.