The consideration for the sale is Rafaella shares valued at $860,000, based on its last trading price on Friday, August 14, 2020.
Following the completion of the deal, Meteoric will have upside exposure to the entire Rafaella portfolio including exploration success at these two projects.
Focus on gold in Australia and Brazil
Meteoric managing director Andrew Tunks said: “This is a fantastic result for Meteoric.”
“With our sole focus being on our highly prospective Western Australian and Brazilian Gold Projects, we did not have the bandwidth to properly explore the Midrim and LaForce Projects.”
The deal will increase the value of Meteoric’s treasury holdings of cash and listed shares to about $6.65million, ideally placing the company to pursue both of its high-grade gold projects.
The completion of the acquisition is subject to various conditions including Rafaella completing due diligence and holders of certain royalties applicable to the Midrim and LaForce Projects agreeing to the assignment of royalties to Rafaella.
Palm Springs drilling
Meteoric has mobilised its exploration team to the Palm Springs Gold Project in WA's Kimberley region for the start this month of stage-1 drilling.
The 6,500-metre program, which will consist of both reverse circulation (RC) and diamond drilling, is scheduled to begin during the week starting August 17, 2020.
Using two rigs, it will comprise around 23 RC holes for 5,000 metres and seven diamond holes for 1,500 metres and has been designed to confirm and extend known high-grade mineralisation.