Consideration for the acquisition is $8 million, consisting of an upfront cash payment of $4 million followed by the issue of shares and an agreement for a percentage of sales royalties.
The Hylea Project is located in one of Australia’s premier cobalt-scandium-nickel province in the central west region of New South Wales, Australia.
Drilling planned at Tigers Creek Prospect
An extensive, shallow drilling is being designed and permitted to both infill and expand the current cobalt and scandium mineralisation at the Tigers Creek Prospect.
It is scheduled for early 2018.
At Tigers Creek 115 historical drill holes for 5,634 metres have previously defined broad laterite hosted nickel and platinum mineralisation.
Results include 7 metres at 0.32% cobalt, 0.15 g/t platinum and 0.55% nickel.
Drill samples from only 33 of these holes were partially assayed for cobalt and scandium and returned high-grade results.
Proximity to established infrastructure beneficial
The project is located within an established mining district close to road, rail and grid power infrastructure with a highly experienced workforce.
Key projects and mines in the region include North Parkes, Newcrest’s Cadia operations and Evolution Mining’s Cowal gold mine.
The share price at midday was standing at $0.007.