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    • Carnaby Resources to acquire Trekelano deposit in Australia, raises million for acquisition
    minsta

    Carnaby Resources to acquire Trekelano deposit in Australia, raises $11 million for acquisition

    Pabio Posted on

    This acquisition is expected to increase the potential annual production target and extend the life of the open pit mine. Credit: Maksim Safaniuk/Shutterstock.

    Carnaby Resources has entered into a binding asset sale agreement with Chinova Resources to acquire the Trekelano copper-gold deposit.

    The deposit is strategically located within a 20km radius of Carnaby’s Greater Duchess Project deposits, thereby enhancing the Company’s resource base.

    Carnaby will acquire a 100% interest in three mining leases, ML90128, ML90125 and ML90183, under the agreement.

    To fund the acquisition and associated activities, Carnaby has secured commitments to raise approximately A$17 million ($11 million) through a two-tranche placement of 54.8 million new shares at 0, $31 per share.

    Glencore International has agreed to subscribe for 10.7 million shares in the first tranche. Additionally, Carnaby directors will subscribe for $500,000, subject to shareholder approval.

    The funds will cover acquisition costs, including stamp duty and estimated deposits for rehabilitation costs, and support the Grand Duchess pre-feasibility study.

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    This includes integrating Trekelano into survey, exploration, resource growth drilling and general working capital.

    Carnaby has also signed a toll and levy term sheet with Glencore for the Greater Duchess project.

    Completion of the acquisition is subject to conditions including approval of the transfer of ownership from the Queensland Department of Resources, including approval of the merger of environmental obligations from the Department of Environment, Science and Development. ‘Queensland Innovation.

    Carnaby has paid a deposit of A$3 million which will be held until the transaction is completed. Once completed, a final cash payment of approximately A$6 million will be made to Chinova.

    Trekelano, located 15 km from Duchess, is a high-grade copper resource with a JORC 2012 inferred mineral resource estimate of 5.2 million tonnes at 1.39% copper, 0.36 grams per tonne of gold and 1.64% copper equivalent.

    This acquisition is expected to increase the potential annual production target and extend the life of the target open pit mine, providing a rapid pathway to production.


    Pabio
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