THE BOURSE WHISPERER: Metals of Africa (ASX: MTA) has signed a Heads of Agreement with Select Exploration (ASX: SLT) to acquire a portfolio of copper-gold exploration projects in Tanzania.
Under the terms of the agreement, Metals of Africa will acquire 100 per cent of five copper-gold exploration projects in Tanzania, subject to the completion of due diligence on or before 31 January 2014.
Location of the tenure of the five projects in Tanzania which Metals
of Africa has agreed to acquire 100%. Source: Company announcement
The company explained the projects have been identified on the basis of identified mineralisation at surface in conjunction with geological and geophysical prospectivity.
“Select Exploration recently reported the identification of outcropping copper sulphide mineralisation at the Godegode project,” Metals of Africa said in its ASX announcement.
“Metals of Africa intends to follow this up with on-ground exploration post the completion of the acquisition.”
In the same announcement the company also advised the market it has entered into an Option Agreement to establish a Joint Venture with Select Exploration over a suite of exploration projects in Gabon.
Select has three project areas in Gabon; one is a recently granted project with the other two under application.
If Metals of Africa commits to the JV, it will be required to cover exploration costs on the projects for the next two years, after which it will earn an 80 per cent interest in the projects.
According to Metals of Africa Select submitted applications for the granted Lastourville project tenement after completing detailed geological analysis and interpretation.
Based on historical data, Select is of the opinion the project is prospective for sediment hosted uranium and precious/base metals.