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Apex Minerals and Croesus Mining to forge new WA nickel exploration company

Apex Minerals NL (ASX: AXM) and well known mining identity Mark Creasy have agreed to vend their WA nickel assets into Croesus Mining NL (ASX: CRS), creating a new focused exploration company.

Under the agreement, Apex will transfer its rights in the Lawlers Nickel Joint Ventures and other nickel tenements situated in the Yandal Belt and Fraser Range province to Croesus in return for agreed consideration.  Apex will transfer its Lawlers Joint Ventures (earning 70%) of nickel rights into Croesus.

The Lawlers joint ventures cover 80 strike kilometres of extensions of the stratigraphy which hosts most of WA’s major world-class nickel sulphide mines, including BHP’s Leinster and Mount Keith nickel operations, Xstrata’s Cosmos, Prospero and Sinclair nickel mines and Norilsk’s Waterloo nickel mine.  It is the single largest ground holding that remains relatively unexplored for nickel sulphide since the discovery and development of most of the surrounding nickel mines.

Croesus will undertake a capital raising of between $5 million to $7 million via a private placement at 85 cents per share and its name will be changed to Sirius Resources NL. Creasy will vend into Croesus large areas of WA nickel and base metal exploration territory strategically accumulated by Creasy over several years.

In consideration for the transfer of its nickel assets, Apex will receive approximately 67 million Croesus shares and 600 million five year options with a strike price of 3 cents. Apex will also be reimbursed for past costs it has incurred.

Mark Creasy, and the vendor entities controlled by him (Creasy) will receive approximately 267 million Croesus shares as reimbursement for past exploration costs incurred on the properties and interests to be transferred to Croesus. On the basis of a $7 million capital raising, Apex will have a 4% stake in Croesus rising to 27% on a fully diluted basis (assuming the subsequent exercise of the options), ensuring that shareholders in Apex stand to benefit from any success in Croesus’ extensive exploration program. Mark Creasy, who currently holds 45% of Croesus, will hold a 29% stake decreasing to 20% on a fully diluted basis.