This will provide access to the Slieve Gallion licence, which is highly prospective for gold and base metals and is close to the 4.4 million ounce Curraghinalt gold resource of Dalradian Resources Inc (AIM:DLAR).
Antrim Metals JV renegotiated
Walkabout has also negotiated a term sheet with Koza to assume exploration management of the Antrim Metals gold joint venture and earn-in another 25% to extend its holding to 75%.
Trevor Benson, executive chairman, said: “Walkabout’s core business strength is the ability to identify and acquire exploration prospects that create follow-on opportunities.
“The addition of these earn-in joint ventures with Koza, which includes management control, enables us to strengthen our position within the highly prospective Dalradian gold belt.
“This further leverages the company’s strategy to diversify into potential growth opportunities.”
The Slieve Gallion JV is a multi-commodity project that comprises one mineral prospecting licence.
It is adjacent to Dalradian’s DG2 property, which hosts the Curraghinalt gold resource and the Cashel Rock VMS occurrence.
Walkabout will earn-in to 50% of the holding company with a minimum expenditure of US$500,000 in exploration costs.
It can earn an additional 25% upon publication of a jointly agreed pre-feasibility study (PFS) and Koza will enjoy a free carry through to publication of the PFS.
At this point, further development costs will be shared 75/25 and Koza may elect to dilute.
If Koza is diluted to 10% or less, a 2% standard Net Smelter Return is triggered.
Historical data compiled
Koza’s early stage exploration has involved an extensive desktop compilation of historical data with field work targeting historic and Tellus anomalies.
Rock sampling from various outcrop and float has discovered up to 58.5 g/t gold and 2.7% copper.
Walkabout is reviewing the exploration plans and budgets for its tenure in Northern Ireland.
The aim is to prioritise and refine these to ensure that future programs are aligned with its exploration strategy.
Field work is planned
Field work will start on the high-priority targets as soon as the transition into the new company has been completed.
A mineralised intersection from the Antrim Metals gold joint venture.
Antrim Metals Limited is the UK registered company jointly owned by Walkabout and Koza UK on a 50:50 basis.
Under a new JV deal, Walkabout will assume management and can earn an additional 25% interest by publishing a JORC resource of 250,000 ounces of gold or gold equivalent.
Koza will free carry until a PFS for a contemplated mining operation is published.
Walkabout is fast-tracking the development of the high-grade Lindi Jumbo Graphite Project in Tanzania and is exploring for lithium at the Eureka Lithium Project in Namibia.
The company holds 70% of four licences at Lindi Jumbo with an option to acquire the remaining 30%.
The company recently closed a $6.7 million 1:3 renounceable rights issue oversubscribed after a strong response from shareholders.