Eastern Metals Ltd (ASX:EMS) has executed an asset sale agreement to acquire Bowgan Minerals Ltd’s Neutral Junction Project in the Arunta pegmatite province in Northern Territory, which is prospective for base metals, lithium, rare earth elements (REEs) and gold.
The acquisition covers 155 blocks across six exploration licences totalling 504 square kilometres including tenure immediately adjacent to and along trend from the company’s Home of Bullion Copper Mine and demonstrate the potential for multi-element mineralisation.
Moving forward, this agreement takes EMS’s Arunta Project landholding to 593 square kilometres inclusive of the company’s existing Barrow Creek tenement.
Eastern managing director and CEO Wayne Rossiter said: “Our Arunta Project has been significantly enhanced with this acquisition which dramatically increases the scope to discover additional copper and gold resources along trend from the Home of Bullion Mine, in addition to targets already identified on existing tenure.
“This new area is known to have anomalous copper from earlier exploration. The significant increase this acquisition brings in the Barrow Creek pegmatite field and broader Arunta Pegmatite Province provides Eastern Metals with significantly increased potential for discovery not just of lithium but also REEs, base metals and gold.”
Key acquisition terms
Key terms of the acquisition include:
- Consideration of $150,000, made up of $50,000 in cash and the allotment of 408,163 fully paid EMS shares, issued at a price of $0.245 per share;
- The issue price of $0.245 per share is the 30-day VWAP of the company’s shares traded on the ASX and is a 22.5% premium to the company’s October 2021 IPO price;
- The shares issued as part of the Acquisition will be escrowed for 12 months from the date of issue; and
- Consideration is payable upon completion 20 business days after registration of EMS as the registered owner of each tenement owned by Bowgan.
Neutral Junction Project
The Neutral Junction Project acquired from Bowgan comprises two distinct tenement areas, all within the Northern Arunta Pegmatite Province.
These are the northern Home of Bullion-Donkey Creek areas and the southern Adnera area.
The project falls within Eastern Metals’ Arunta Project area, which is to the east of the Stuart Highway between Alice Springs and Tennant Creek near Barrow Creek.
Arunta Pegmatite Province is prospective for LCT pegmatites and associated lithium-bearing mineralogy.
Part of the tenement package acquired is adjacent to the Sandover Copper Project held by Encounter Resources.
Furthermore, several companies including Core Lithium and Australasian Gold have recently started exploration for lithium in the pegmatites in the Barrow Creek pegmatite field and the wider Northern Arunta Pegmatite Province.