THE BOURSE WHISPERER: Perth-based explorer Peel Mining has reached an agreement with OZ Minerals subsidiary, OZ Exploration to purchase a strategic exploration license in close proximity to Peel’s Mallee Bull copper-polymetallic discovery.
Peel has also pegged several large tenement areas due to expire in the next fortnight currently held by OZ Minerals.
Peel said the OZ Minerals tenement combined with the new Exploration Licence Areas represent highly-prospective additions to the company’s existing tenement holdings.
The addition of the new areas effectively trebles Peel’s land position following the pegging of ELA4493 the company announced in April 2012.
Map showing new tenements. Source: Company announcement
The company has conducted a review of exploration data, which it said has identified several targets of immediate interest to the southwest of its 100 per cent-owned Mallee Bull deposit.
These targets will be prioritised for drill testing when timing suits.
Commenting on the agreement,
“The acquisition of EL7519, along with additional regional tenure, is an exciting development for Peel,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“EL7519 contains several strong magnetic anomalies which lie on the same structural trend as the Mallee Bull prospect.
“Peel looks forward to testing these anomalies in due course. ”
– Under the terms of the agreement between Peel and OZ Minerals:
– Peel will acquire a 100 per cent interest in Exploration Licence EL7519;
– OZ Minerals is not to renew other tenements in close proximity to the EL in question.
– Peel will issue OZ Minerals 2.5 million shares at 10 cents per share ($250,000); and
– These consideration shares will be voluntarily escrowed for 12 months.