THE BOURSE WHISPERER: InterMet Resources (ASX: ITT) has signed a binding Heads of Agreement for the acquisition of privately-owned company Lancaster Resources.
To fund ongoing exploration activities, InterMet has also executed a capital raising with Merchant Group to place 100 million shares at an issue price of 0.5 cents per share, with a free 1:2 attaching option exercisable at one cent per share on or before 1 July 2016.
The company indicated the placement will be to sophisticated investors and will raise a total of $500,000 before costs.
Lancaster Resources has four Australian mineral exploration projects, including an option over a large landholding around the Rox Resources (ASX: RXL) Mt Fisher East nickel project and the Cullen Resources (ASX: CUL) Mt Eureka nickel project.
The company also holds cash assets of approximately $450,000.
The four Lancaster projects are targeting nickel sulphides, tungsten and gold, which InterMet considers to be a synergistic fit with its existing projects.
The Mt Jewell project is located 65km north of Kalgoorlie in Western Australia and has been subjected to historical drilling, which has intersected nickel sulphides.
InterMet considers there to also be potential for gold mineralisation.
The Wilks Creek project is located in Victoria and is centred on a historical tungsten mine.
Previous exploration has defined a large tungsten anomaly that has been advanced by Lancaster to a drill ready target.
The Royal Tasman project in Tasmania is targeting granite related, sediment hosted gold and greisen hosted tin mineralisation in an area of historical gold and tin mining.
At the Nickel First project in WA, Lancaster has an option to acquire a 100 per cent interest in four tenements totalling 463.99 square kilometres located and adjoining Rox Resources’ Mt Fisher East project near Wiluna.
“The projects are prospective for disseminated and semi massive Kambalda style nickel mineralisation as well as gold,” InterMet Resources said in its ASX announcement.
“The proposed transaction will see InterMet acquire 100 per cent of the share capital in Lancaster by way of a share sale agreement with existing Lancaster shareholders.
“The acquisition price for 100 per cent equity in Lancaster is $700,000 payable by the issue of 140,000,000 fully paid InterMet ordinary shares, which will be escrowed for three months.
“The acquisition of Lancaster would provide a further cash injection for InterMet, and a significant exploration portfolio, which would complement InterMet’s 8 Mile Creek and Calypso projects.”
Both the acquisition of Lancaster and the proposed placement are subject to InterMet shareholder approval, and a NOM will be lodged once InterMet has received acceptance from Lancaster shareholders.