Baru Resources (ASX: BAC) has been granted a minimum three month extension to the due diligence period for the acquisition of a 100% of Horizon Mines.
The extension was provided as Horizon has now lodged a total of six mineral exploration tenement applications in Myanmar, as opposed to the five applications previously announced.
Horizon’s tenement applications primarily target porphyry copper-gold mineralisation as well as potential smaller, higher grade epithermal and sediment hosted gold deposits.
A number of old mines are also present within the permit applications.
Myanmar represents a highly prospective geological terrain which is expected to generate a large number of high quality deposits over the next five to 10 years as the country is now open for exploration.
It has virtually been unexplored for 65 years despite very high prospectivity.
As part of the due diligence extension, Baru will process the second tranche payment of A$25,000 reducing the amount payable for the proposed acquisition to $40,000 and the issue of 400,000 shares.
The outstanding amount will be made once the applications have been granted from the Department of Geology and Survey and Mineral Exploration in Myanmar.
Baru had around $1.9 million in cash at the end of the March 2013 quarter.
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Baru Resources gains extension for Horizon Mines acquisition
Published: 16:40 23 Apr 2013 AEST