Minerals Corporation (ASX:MSC) has entered into an option agreement with NZA Commodities to acquire the prospective Riwaka nickel-copper-platinum project near Nelson, New Zealand.
The company is also raising up to $580,966, via a 1 for 1 non-renounceable entitlement issue at $0.04 with a free attaching $0.1 option.
These funds will be used for due diligence at Riwaka, and for exploration activities at its Skardon Kaolin Project in Cape York Peninsula, Queensland.
The Riwaka project comprises three leases covering 95 square kilometres of the mineralised Riwaka Complex, a mafic-ultramafic intrusive body.
It contains 26 kilometres of layered ultramafic intrusions with numerous massive sulphide occurrences and untested gossans.
Historic shallow drilling has confirmed strong nickel intersections, including 1.4 metres at 2.2% with 0.6% copper.
Adding to the appeal, the New Zealand government has just released a detailed study on the Riwaka project which validates the project as highly prospective.
Following a targeted VTEM program, MSC will make a decision on whether to exercise the option. The company has also secured the services of Peter Smith, a geophysicist with extensive experience in New Zealand.
As part of a technical due diligence, MSC will fund up to $250,000 towards an airborne geophysical survey over the prospective areas; and must decide whether to proceed within 60 days.
If MSC elects to exercise the option it will issue 4.5 million shares to the vendors, and an additional 1.5 million shares upon expenditure of $2 million or more at the project.
MSC is lightly valued at just $1 million.
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