THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has signed a non-binding Memorandum of Understanding (MoU) with Castillo Copper (ASX:CCZ) and Squadron Resources.
Castillo Copper and Squadron Resources, along with Impact, are also holders of large tenement packages around the world class Broken Hill Mine.
The tree entities are coming together to form the new Broken Hill Alliance.
Impact’s contribution to the Alliance will be the rights to silver-lead-zinc Broken Hill-style mineralisation and other associated styles of mineralisation.
Impact will retain the rights to all of the platinum group metals (palladium-platinum-rhodiumosmium-iridium-ruthenium) as well as associated nickel-copper and other precious and associated metals across its entire tenement holding in the region.
Two key terms of the non-binding MoU are:
It is an initial six-month agreement to market the Alliance’s ground holding to potential strategic partners, with the marketing to be led by Castillo Copper; and
If a suitable partner is found, then the three parties will form a special purpose vehicle (SPV) which will acquire the relevant tenements and metal rights from the three parties in return for equal shareholdings (33.3% each) in the new SPV company.
“With palladium and rhodium yet again reaching record prices late last week and now being well funded following our recent successful capital raising, we are gearing up to return to exploration at our unique Broken Hill project where our previous drilling there has delivered exceptional grades of all six platinum group metals (palladium, platinum, rhodium, ruthenium, osmium and iridium) not to mention gold, nickel and copper as well,” Impact Minerals managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.
“As we move towards the follow up drill campaign it is important that we focus our exploration funds on the platinum group metals and therefore we are delighted to have signed this MoU with Castillo Copper and our major shareholder Squadron Resources Limited who also have tenements in the area, to search for a strategic partner for the non-PGM and associated metal rights on our ground holding.
“The Broken Hill region is highly prospective for silver-lead zinc mineralisation and it is only appropriate that we look for partners to help maximise the potential of our large strategic ground holding there.
“We look forward to working with the Alliance to achieve this goal.”