THE BOURSE WHISPERER: Cassini Resources (ASX: CZI) has completed acquisition of an 80 per cent interest in the Yarawindah Brook nickel-copper-cobalt project, located near the town of New Norcia in Western Australia.
Cassini Resources completed the deal by acquiring 80 per cent of the issued share capital of Souwest Metals Pty Ltd, a private company associated with Kalgoorlie prospector and identity Scott Wilson.
Payment for the acquisition consist the payment of $300,000 and the grant of approximately 6.1 million options, each with a three-year expiry date and exercisable at 12.35 cents.
Subsequent to the deal, Cassini and the existing Souwest shareholders have executed a Joint Venture agreement, the terms of which require Cassini to sole fund all expenditure up until a Decision to Mine is made.
After the Sole Funding Period, Cassini and Souwest are to contribute proportionally to the JV, or alternatively, Souwest may elect to convert its then Shareholder Interest into a 2 per cent Net Smelter Royalty.
The Yarawindah Brook project is located 130 kilometres northeast of Perth and has undergone limited nickel, copper and cobalt exploration, despite its favourable regional setting, prospective geology and near-surface occurrences of nickel and copper mineralisation.
Historic exploration on E70/4883 has focussed primarily on a small platinum and palladium (PGE’s) resource, which Cassini considers as a ‘path-finder’ anomaly for potential massive nickel-copper-cobalt sulphides.
The company completed an airborne electromagnetic survey (AEM) over the project in early 2018 identifying numerous conductors it considers worthy of further investigation.
A surface fixed loop electromagnetic (FLEM) survey has also been completed over several of the higher priority AEM anomalies in order to confirm and better constrain the conductors prior to drilling.
In a nod to the prospectivity of the region, Cassini has added additional tenements E70/5116 and E70/5166 to the project, taking its total land position to 146 square kilometres.
The company is currently progressing access agreements with local landholders and environmental approvals in preparation for drill testing.