Under the agreement, A-Cap is farming into Wilconi with the ability to earn up to a 75% interest.
A-Cap will acquire an initial 20% interest by paying $2.8 million and will also acquire exploration data by making an additional $100,000 payment.
An additional 35% interest can be earned through a $500,000 cash payment within 24 months and $5 million worth of exploration spend.
The final 20%, taking A-Cap’s interest to 75%, is achieved by completing a definitive feasibility study (DFS) within 36 months, $1 million payment, and $1.5 million worth of A-Cap shares.
Transaction consistent with Blackham’s strategy
Blackham’s chairman Milan Jerkovic said: “Blackham is delighted to have partnered with A-Cap Energy to add value to the sizeable Wiluna Cobalt Nickel Project.
“This transaction is consistent with Blackham’s previous stated strategy of divesting non-core assets allowing it to focus on its Matilda-Wiluna Gold Operation.
“We look forward to working with our new partners to fast track the exploration of a project within Western Australia’s premier nickel/cobalt province that has had little attention over the last 12 years.”
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.
Blackham aims to produce over 200,000 ounces gold per year from one site