GreenTech Metals has entered into binding agreements for two of its non-core exploration licences and a single prospecting licence, which will allow the company to focus on its nearby Whundo copper project. The adjoining tenements include one prospecting licence that is yet to be granted and enclose a total of 930 hectares.
The deal allows the buyer and joint venture partner, ASX-listed explorer Errawarra Resources, to consolidate prospective ground around its 363ha Elizabeth Hill silver mine lease.
GreenTech will sell 70 per cent of its interest in its tenement trio to Errawarra, with GreenTech retaining a 30 per cent free carried interest up to a decision to mine.
GreenTech will also receive a $100,000 cash up-front payment and a further $2 million performance payment upon decision to mine, while Errawarra will fund a minimum expenditure and meet all the statutory tenement obligations and expend a minimum of $1 million over four years.
Errawarra Resources yesterday announced it had entered separate binding agreements to acquire 70 per cent of Alien Metals’ historic Elizabeth Hill silver project, 70 per cent of Alien’s silver rights to the Pinderi Hills project tenements and a 70 per cent interest in GreenTech’s three licences that surround the Elizabeth Hills mine.
Errawarra’s Elizabeth Hill project acquisition is subject to conditions and other relevant approvals, including Errawarra successfully entering both its joint venture agreements.
Errawarra will manage the joint venture operations and plans to kick off exploration within weeks.
The Elizabeth Hill silver mine is strategically located about 6 kilometres southwest of GreenTech’s Whundo copper project and 14km south of Karratha.
The project produced 1.2 million ounces of silver from 16,830 tonnes of ore and is known for its high-grade silver mineralisation. Production ceased in 2000 due to low silver prices, but the operation still has untapped potential. It has had only limited exploration drill testing.
Errawarra said the acquisition was “transformational” and ensures the company will be the first explorer to consolidate the Elizabeth Hill mine with a 180 square kilometre surrounding land package that embraces additional prospective and underexplored areas.
The move also allows GreenTech to focus on its nearby Whundo copper project and finalise plans to unlock the value of its lithium interests, respectively 15km and 40km south of Karratha.
Details of its plans for the lithium projects are still being formulated.
GreenTech’s lithium interests comprise its 100 per cent owned Kobe lithium prospect exploration licence and its contiguous GreenTech-Artemis Resources Osborne joint venture exploration licence.
Both licences occupy a 50km by 9km Pilbara pegmatite corridor and are centred in a trend 17km west of the world-class Andover lithium project owned by Chilean giant Sociedad Química y Minera de Chile SA, Hancock Prospecting and the Creasy Group.
GreenTech announced two weeks ago that it has logged massive volcanogenic sulphides from two diamond holes for 1187 metres at its Shelby and Austin targets at Whundo to investigate deep downhole electromagnetic conductor plates.
Both holes intersected massive to semi-massive sulphide intercepts comprising chalcopyrite, sphalerite, pyrrhotite and pyrite and are being prepared for downhole electromagnetic surveys. Assays are pending.
GreenTech has recommenced its drilling program at Whundo as it is keen to further explore the down-dip potential indicated from visual estimates and to further test its conceptual model.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Doug Bright
