The project, which lies 160 kilometres northeast of Kalgoorlie on Edjundina Station comprises three prospects to the north and east of the historic Yarri State Battery site.
Focus on Woodline
Nelson’s focus at Yarri has been on the Wallaby Line of workings immediately to the east of Yarri, where drilling has returned several high-grade, encouraging drill intersections.
This potential sale will allow Nelson to focus on its ‘significant’ 828 square kilometre Woodline project at the boundary of the Albany Fraser Oregon and the Yilgarn Craton.
Option agreement terms
The terms of the option agreement are:
- Payment to the company of a $5,000 non-refundable option fee (which has been received);
- On its election to acquire Yarri, Haddison will pay the company a $100,000 cash consideration; and
- Nelson will receive a 2% net smelter royalty for any minerals sold from the Yarri project.
Renounceable rights issue
Nelson has also announced a renounceable rights issue to raise up to $2 million to fund exploration on the Woodline project.
Under the offer, shareholders will be offered one new share for every one existing share held on June 12, with one attaching listed option exercisable at 8 cents and expiring 24 months from issue for every two new shares subscribed.
The offer price represents a 17% discount to the 30-day VWAP of 4.6 cents.
Nelson’s directors believe the issue is attractively priced and intend to participate for their full entitlement, having agreed to sub-underwrite for an additional $150,000 from the shortfall.
The company will present at today's Proactive’s online webinar from 12 noon (AEST), outlining its search for the next Tropicana Gold Mine.
Executive director Adam Schofield will discuss its projects in Western Australia, spanning across 956 square kilometres.
Tuesday, June 9, 12 noon (AEST);
Link to register: click here
Please send any questions to John Philips - email@example.com or call on 0431 597 771