Alligator Energy Ltd (ASX:AGE) has formalised a 12-month option agreement to acquire 100% of three exploration licences that form part of the Piedmont Nickel-Cobalt Project farm-in and JV in northern Italy.
Subsequently, the option period of 12 months will now begin and the option fee of $75,000 is payable within five business days.
Encouragingly, the company believes that its ability to obtain 100% control of all Piedmont Project exploration licences will increase interest and dialogue with strategic investors.
Moving forward, Alligator is planning a September quarter geophysics program after recently completing a site visit.
Option agreement
The option agreement provides Alligator with the ability to consolidate a tenure focal area of 8,610 hectares which stretches from the historic Campello Monti workings to the north, across La Balma Alpe Laghetto and Alpe Cevia through the Meula, Valmaggia and Isola area south to the Castello di Gavala and Sella Bassa historic mines.
This agreement is consistent with the terms and conditions of a binding term sheet previously announced on February 8, 2022, with all conditions precedent having been met.
The option can be exercised at any time during the 12-month period and completion of a transaction is then only subject to obtaining evidence of transfer approval from the regulatory authorities in Piedmont.
On satisfaction of the approval condition, the agreed purchase consideration of $350,000 (in a mix of cash and shares) becomes payable and a 1% Net Smelter Royalty (NSR) is granted based on future production from the Laghetto Exploration Licence area.
Piedmont Nickel-Cobalt Project licence overview.
Forward plan
Contractor arrangements are being finalised to undertake ground-based EM geophysics at Alpe Laghetto and broader ranging drone magnetic surveys over additional prospects.
Survey design is well underway for targeted ground EM surveys at Alpe Laghetto, intended to target continuation of nickel sulphide occurrences along strike of existing historic workings and larger occurrences at depth.
Drone magnetics are planned over proposed EM survey regions to aid with differentiating potential EM conductors and at a regional level to cover key geological continuations.
Assuming finalisation of engaging the preferred contractor, proposed works are planned for the September quarter.