Chase Mining Corporation Ltd (ASX:CML) has varied the terms under which it has agreed to purchase Green Critical Minerals Pty Ltd (GCM), which holds earn-in rights for up to 80% of the advanced ultra-high purity McIntosh Graphite Project in Western Australia.
The McIntosh Project is believed to be the third largest ASX-listed graphite project in Australia, boasting a combined JORC-compliant resource estimate of 23.8 million tonnes at 4.45% total contained graphite, of which 81% is classified in the higher confidence indicated category.
There have been more than 40,000 metres of graphite-targeted drilling completed on the project to date along with extensive metallurgical test-work.
Unique project
McIntosh is a unique, graphite project with extremely low impurities and exceptional “low cost and high yield” downstream processing attributes with the potential to produce high-quality graphite products into a diverse range of premium end-use markets.
Executive director Leon Pretorius said: “The McIntosh Graphite Project is believed to be one of the most advanced and largest graphite resources in Australia, and its acquisition will complement Chase’s growing rare earth exploration portfolio and has the potential to transform CML.
Tracking the carbon footprint
“GCM will, once under CML’s control, focus its efforts on building an Australian mine to market graphite business, one that provides an attractive offering to the battery anode end users with the key features of tracking carbon footprint throughout the supply chain (traceability) and supply from stable, reputable countries with good environmental practices (responsible sourcing) such as Australia.
“McIntosh and its significant potential remain unchanged, however, the improved deal metrics and ability for all shareholders to participate via a rights issue makes the transaction compelling for all shareholders, and I will be fully supporting it, including through participating in the rights issue.”
The fine print
Under the varied terms CML will issue the following securities to purchase all of GCM’s issued shares:
1. 245,872,849 ordinary shares;
2. 122,936,424 options, each to be issued one CML ordinary shares at an exercise price of $0.022 and expiring three years from issue;
3. 245,872,849 performance rights which will vest to ordinary shares under a set of conditions related to the tonnage of resource gleaned from the tenements.