THE BOURSE WHISPERER: Alloy Resources (ASX: AYR) has entered into a binding Heads of Agreement to acquire unlisted public company Dingo Resources Limited.
Alloy Resources explained that Dingo has the right to acquire two mineral exploration projects in Western Australia which Alloy believes will revitalise its pipeline of exploration projects and offer new opportunities for exploration success.
“We have been looking for the right opportunity to revitalise the company’s pipeline of projects and these high-quality exploration plays have the potential to be ‘company makers’ for Alloy,” Alloy Resources executive chairman Andy Viner said in the company’s announcement to the Australian Securities Exchange.
“Through Dingo, we are pleased to be acquiring two fantastic exploration opportunities in Western Australia.
“To complement our JV with Rio Tinto in the Paterson, we are now purchasing a project from Rio in the West Musgrave region which has a well-defined target.
“In addition, we have also secured a large landholding right in the middle of Sandfire’s Bryah Basin exploration areas which has numerous early stage copper-gold targets.
“This year is going to be incredibly busy for Alloy and we look forward to delivering on this huge potential for both existing shareholders and new investors.”
The Morgan Range project is located in the West Musgrave belt of Western Australia and encompasses similar geology to the large Nebo-Babel and Succoth nickel-copper deposits, located some 50 kilometres to the south west, which have been the subject of a recently completed Pre-feasibility Study by Oz Minerals in Joint Venture with Cassini Resources.
The principal target is a strong historical aerial electro-magnetic anomaly (TEM) selected by Rio Tinto Exploration (RTX) for pegging, which has now been optioned to Dingo.
The Bryah Basin project is located approximately 80 kilometres north of Meekatharra in the Gascoyne district of Western Australia.
The project comprises five early stage Exploration Licences covering 260 square kilometres.