Alt buys Chameleon

PERTH (miningweekly.com) – Junior Alt Resources has entered into an agreement with fellow ASX-listed Minotaur Exploration to acquire the Chameleon gold deposit in Western Australia.

The project is estimated to host an inferred resource of 1.1-million tonnes, grading 2.1 g/t gold for 77 000 oz of gold, and has substantial exploration upside with numerous drill-ready targets.

Under the agreement, Alt will pay A$600 000 in cash within 60 days of executing a binding term sheet, and will issue two-million of its own shares, at a deemed value of 10c a share. In the event that Alt shares fall below 8.5c each over a five-day trading period, the company will issue additional shares worth A$200 000.

The transaction is also subject to a number of conditions precedent, including the signing of a nickel rights agreement, the assignment of applicable royalties, as well as the necessary third party approvals and consents.

Alt CEO James Anderson said on Thursday that the Chameleon deposit represented a significant acquisition for Alt, and was in line with the company’s strategy to develop small Western Australia-based openpit toll treating projects.

“Moving forward, this toll treating strategy is aimed at generating future cash flow for the company as these Western Australian projects progress. Chameleon is an undeveloped asset with oxide openpit potential and exploration upside.

“The company intends to fast-track resource drilling at Chameleon with the aim of bringing the resource to indicated status. Other gold prospects within the leases also show promising historical results with limited modern exploration.”