THE BOURSE WHISPERER: Tiger Resources has formed a strategic alliance with Zambia-focused copper explorer Chrysalis Resources.
The deal will entail Tiger investing up to $1.68 million to acquire a 19.9 per cent interest in Chrysalis by subscribing for any shortfall shares arising under Chrysalis’s current rights issue and/or taking a separate placement of Chrysalis shares.
Tiger will be entitled to appoint one representative to the board of Chrysalis and the parties will form a joint technical committee with equal representation from Tiger and Chrysalis.
Tiger presently has an exploration team based in Lubumbashi, in the Democratic Republic of Congo, which is located within 200 kilometres of Chrysalis’s Shikila and Kabwima projects in the Zambian Copperbelt.
Location of Chrysalis’s Zambian projects and Tiger’s Kipoi and Lupoto projects. Source: Tiger Resources announcement
Tiger said the strategic alliance with Chrysalis offered the company an opportunity to expand into the Zambian Copperbelt for a modest outlay.
“Chrysalis’s Zambian projects host significant potential for copper mineralisation and are located within the vicinity of the Lumwana and Kansanshi copper projects and Blackthorn Resources Limited’s recent discovery at Kitumba,” Tiger Resources managing director Brad Marwood said in the company’s announcement to the Australian Securities Exchange.
“In addition, Tiger will gain exposure to the Doolgunna West copper-gold project in Western Australia, adjacent to the high-grade De-Grussa copper-gold project under development by Sandfire Resources.”
Chrysalis acquired the Zambian copper project in June this year by way of purchasing a 100 per cent interest in Zambian Copper Pty Ltd, which in turn owns 99.9 per cent of Sedgwick Resources.
Sedgwick in turn owns the Zambian copper project, which covers an area in excess of 3,000 square kilometres, of which 2,180sqkm is in the Copperbelt region of northern Zambia.
“The strategic alliance with Tiger is a key step in planning future exploration on the recently acquired Zambian copper prospects,” Chrysalis Resources executive chairman Dr Neale Fong explained in his company’s ASX announcement.
“Tiger brings a wealth of experience and resources to the alliance and Chrysalis looks forward to working closely with Tiger on not only the Zambian copper project but also Chrysalis’ other Western Australia-based projects.”
Chrysalis’ West Australian exploration projects include the Doolgunna West copper-gold project located within the Meekatharra Mineral Field.
Earlier this year Chrysalis signed a Joint Venture farm-in agreement with Talisman Mining to enable further exploration of this project.