Anson Resources Limited (ASX:ASN) has entered into a binding agreement to acquire State Exploration Pty Ltd, the sole holder of the Bull Nickel-Copper-PGE Project, which is near the high-grade Julimar discovery of Chalice Gold Mines Limited (ASX:CHN).
This project abuts Chalice tenements and is 12 kilometres southwest along strike of the Julimar nickel-copper-PGE (platinum group elements) discovery.
The pending exploration licence application covers an area of 56 square kilometres on the western edge of Yilgarn Craton and is underlain by magnetic features similar to Julimar.
Highly prospective region
This region, which is not far from Perth, is mainly undercover and has not been previously explored for nickel-copper-PGE.
The Julimar mineralisation remains open in all directions and could point to a regional-scale discovery.
Anson considers the Bull Project highly prospective as it could host extensions or repeat of similar ore bodies.
The project sits on tenement E70/5420 and will be acquired through the acquisition by Anson of all the issued capital in tenement holder State Exploration from Scant Resources Pty Ltd and Australian Prospecting Pty Ltd.
The consideration for the acquisition will be $150,000, to be settled by the issue of 12.5 million Anson shares.
Completion is expected to occur pending shareholder approval and Anson will convene an Extraordinary General Meeting as soon as practicable. This is expected to be held in June 2020.
Anson has a multi-mineral/multi-revenue strategy and the acquisition of the Bull project adds to Anson’s existing base metal exploration projects in Western Australia where exploration activity is continuing.
The Ajana project has previously had soil sampling programs completed showing lead-copper-zinc-silver anomalies.
Assay results for a previous drilling program at the company’s Hooley well project show nickel-chromium-cobalt mineralisation.
While the Paradox Brine Project in the US remains the primary focus of Anson’s development program, it intends to conduct exploration activities at the Bull project upon the exploration licence application being granted.
The Bull Project is just 35 kilometres from Perth.
Anson has also received binding commitments for a $600,000 capital raising in a share and option placement to sophisticated investors.
The placement is for 50 million fully paid ordinary shares at an issue price of 12 cents per share, to raise $600,000 before costs, with each share to be accompanied by a free attaching option exercisable at 35 cents per share and expiring three years from the date of issue (subject to shareholder approval).
Settlement is expected to occur on or around May 6, 2020.
This price is 63% of the 15-trading day volume-weighted average price of Anson’s shares on ASX prior to the trading halt requested on 1 April 2020 and subsequent suspension from trading.
Funding for Paradox PEA
Proceeds will be used to complete a preliminary economic assessment (PEA) and for working capital for Anson’s Paradox Brine Project in Utah, USA.
The PEA is expected to be completed in early May 2020.
The target completion date has been delayed as a result of the effects of COVID-19.
Following the release of the PEA, the company plans to progress permitting activities and advance to a preliminary feasibility study.
Expiry of convertible note options
Anson’s strategic investor, Chia Tai Xingye International, Zhongfan Group (Chia Tai), was unable to exercise its option to provide further funding to Anson through the convertible note agreement within an agreed timeframe due to the changes to the Foreign Acquisitions and Takeovers Act 1975 (FATA) effective March 29, 2020.
This change necessitated Anson arranging alternative funding, which has been via the placement.
Chia Tai continues to remain interested in future funding opportunities.