PERTH (miningweekly.com) – ASX-listed base metals firm Metalicity has moved to diversify its portfolio with the addition of graphite exploration licences in Western Australia.
The company has entered into a tenement sale letter of agreement to acquire an exploration licence and an exploration licence application covering 146 km2 of tenement in the Manglinup district.
Metalicity MD Matt Gauci told shareholders that while the main focus of the company was the well-funded base metals programmes, with some A$5-million cash to advance the Admiral Bay zinc project, it was clear that the graphite sector had a strong demand profile.
“Desktop exploration works have commenced immediately and will soon be followed by field exploration work to define drilling targets,” Gauci said.
Under the terms of the agreement, Metalicitiy would pay project owners Borg Geoscience A$50 000 for a full interest in the two tenement areas.
Payment would be made through a A$25 000 nonrefundable cash component and a A$25 000 share component, with Metalicity shares priced at 2c each, and the placement comprising 1.25-million shares.
Metalicity would also grant Borg a 1.5% net smelter royalty on production from the project.
Edited by: Creamer Media Reporter
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