The deal is for A-Cap to farm-in to a 75% interest for the cobalt, nickel and associated metals of the Wiluna Cobalt Nickel (Wilconi) Project in Western Australia.
Originally, the binding term sheet set out the satisfaction of conditions precedent on or by 29 November 2018 – both parties have agreed to extend this to Thursday 13 December 2018.
Wilconi has a JORC inferred resource of 80.5 million tonnes at 0.77% nickel and 0.058% cobalt.
This transaction is consistent with Blackham’s stated strategy of divesting non-core assets allowing it to focus on its Matilda-Wiluna Gold Operation in Western Australia.
Three-staged joint venture structure proposed
A-Cap will acquire an initial 20% JV interest by making a cash payment to Blackham of $2.8 million within two days of the parties entering into the staged JV agreement.
On making the payment A-Cap will also acquire third-party exploration data for a payment of $100,000.
A second earn-in interest of a further 35% may be acquired by A-Cap for a cash payment of $500,000 within a period of 24 months and after incurring minimum expenditure on exploration activities.
The third earn-in interest of 20%, bringing the total JV interest held by A-Cap to 75%, will be subject to completing the project’s definitive feasibility study within 36 months, a cash payment of $1 million and an issue of $1.5 million worth of A-Cap shares.
A-Cap plans to upgrade resource to JORC 2012 standards
A-Cap intends to immediately begin a drilling campaign to bring existing inferred resources at Wilconi into JORC 2012 standard.