FE Limited: Agreement to Earn-In to Macarthur Minerals Lithium and Gold Tenements
(firmenpresse) - Agreement to Earn-In to Macarthur Minerals Lithium and Gold Tenements
Highlights:
- Fe Limited (FEL) has secured an exclusive option to earn-in to 75% interest in the Macarthur Minerals Lithium and Gold Tenements located in the Pilbara region of Western Australia - one of the worlds emerging lithium provinces
- Complements the Mercury Lithium tenement ground that FEL is set to acquire (refer ASX announcement 22 February 2019); together providing FEL with over 1,6002 km of highly prospective ground
- FEL to raise up to $2m via placement
Fe Limited (ASX: FEL) (FEL or the Company) is pleased to announce that it has entered into an exclusive option agreement (Option Agreement) with Macarthur Lithium Pty Ltd (MLi), a wholly owned subsidiary of Macarthur Minerals Limited (Macarthur) (TSX-V:MMS) to acquire an interest of up to 75% in the tenements listed at Schedule 1 (Project).
The Project includes 19 tenements highly prospective for gold, copper and lithium in proximity to numerous known hard rock lithium and gold deposits in the central and eastern Pilbara (refer Schedule 1 and Figure 1).
Terms of Option Agreement
MLi has granted FEL a 45 day option to enable FEL to conduct due diligence and secure the required funding to proceed with exercising the option. The Company will pay a non-refundable option fee to MLi of $100,000 in cash (Option Fee).
Should FEL formally elect to exercise the option within the 45 day option period, $400,000 will be payable to MLi (Option Exercise Fee).
Upon payment of the Option Exercise Fee (Exercise Date), FEL will have the right to earn-in up to 75% interest in the Project, on the following terms:
1) Stage 1 - Initial 25% interest in the Project by:
a. undertaking project expenditure of $800,000; and
b. payment to MLi of $500,000 in cash,
within 1 year from the Exercise Date;
2) Stage 2 - Further 30% interest in the Project by:
a. undertaking further project expenditure of $750,000; and
b. payment to MLi of $500,000 in cash or shares (based on 5 day VWAP prior to the issue date) at FELs election,
within 2 years from the Exercise Date;
3) Stage 3 - Further 20% interest in the Project by:
a. undertaking further project expenditure of $750,000 and
b. payment to MLi of $750,000 in cash or shares (based on 5 day VWAP prior to the issue date) at FELs election,
within 3 years from the Exercise Date.
MLi will act as JV manager and be paid a 10% project management fee (excluded from earn-in expenditure) and will be free carried until a pre-feasibility study is completed.
FEL can withdraw from the earn-in at any time and without penalty.
Funding
FEL has the necessary funds available to fund the Option Fee. As previously announced, the Board has resolved that it is seeking to undertake a placement of up to $2 million during the June 2019 quarter (Placement). The issue price of fully paid ordinary FEL shares (Shares) under the proposed Placement is at $0.015 per Share, with one unlisted option for every four Placement Shares issued at an exercise price of $0.02 each expiring 31 May 2021 (Options). The issue will be made to unrelated parties. Should the Placement proceed, it is proposed to be completed in two tranches, as follows:
- Tranche 1 will comprise 50,906,990 Placement Shares to be issued under the Companys existing Listing 7.1 and 7.1A capacity and settled as soon as possible after announcement of the confirmed Placement; and
- Tranche 2 will comprise 82,426,343 Placement Shares, and 33,333,333 Placement Options (being the Placement Options attaching the Tranche 1 and Tranche 2 Placement Shares) to be issued subject to receipt of shareholder approval.
The final decision as to whether or not to proceed with the exercising the option to earn-in remains subject to the Company securing funding via the proposed Placement to cover payment of the Option Exercise Fee and to allocate funding towards Stage 1 requirements.
The Company will update the market as to its progress with the proposed Placement.
Lithium Prospectivity
Reconnaissance site visits and sampling conducted by Macarthur has identified several targets for further exploration with several occurrences of observed pegmatite in outcrop. Preliminary rock chip sampling returned elevated lithium values from pegmatite samples containing visually identified spodumene and lepidolite minerals. Many of the tenements are close to or contain pegmatites from known world class deposits such as the Pilbara Minerals Pligangoora project.
Tambourah Project
The Tambourah Project is located approximately 200 km southeast of Port Hedland and 80 km southwest of Marble Bar in the Pilbara region of Western Australia. The Tambourah Project is approximately 80km south of Pilbara Minerals Limiteds and Altura Mining Limiteds Pilgangoora Lithium Projects.
The Tambourah Project was recognized for having potential for lithium mineralization during a historical review with reports of a Lithium Minedex Record from the Geological Society of WA (GSWA).
Should the Company proceed to exercise the option to earn-in, FEL will begin planning immediate site reconnaissance field work to determine core areas of focus and the next steps for exploration.
Gold Prospectivity
As can be seen in figure 1, there are numerous gold occurrences within and around the MLi tenement package in what is a very well endowed gold province, particularly in association with greenstones. Several tenements have historic high grade gold (and copper) occurrences associated with conglomerates found along lithological boundaries such as the Mt Roe Basalt, known to host significant gold deposits elsewhere in the Pilbara.
Others contain more conventional deposits as identified through numerous nugget discoveries by prospectors and other known deposits in the Pilbara within and adjacent to the same geological units.
Hillside Gold Project
The Hillside Gold Project in the Pilbara covers an area of ~ 400 km2, of greenstone lithologies highly prospective for gold and copper mineralisation. Historical gold mining has occurred within the tenement area with recent activity by prospectors. (Figure 2).
In May 2018, an Airborne Electromagnetic survey was flown over two areas of the Hillside Gold Project. The aim of the survey was to define high priority targets from conductors such as clusters of massive sulphide hosted base metal deposits at depth. The survey was conducted using the SkyTEM system with 150m spaced lines totalling 846 line-kilometers covering approximately 125 km2 (refer figure 2).
The heliborne SkyTEM electromagnetic survey identified 18 high priority bedrock conductors. All anomalies correlate with historic gold workings, surface copper and gold geochemical anomalies, magnetic anomalies or fault systems. The next steps is ground truthing these anomalies with subsequent drill testing of targets.
Macarthurs Hillside Gold Project occupies a region comprising similar geological units as the nearby Warrawoona Gold Project of ASX listed Calidus Resources where recent exploration has defined a 1.25 million ounce gold resource. Calidus Resources ASX Announcement 11 April 2019
Panorama and Bonnie Scot Gold Projects
The Panorama Project is located in the Pilbara region of Western Australia. The project consists of two tenements E45/4779 and E45/4732 covering a total of 265 km2. The Panorama Project sits adjacent to Macarthurs Bonnie Scot Project on tenement E45/4764. GSWA geological mapping shows extensive outcrops of Mt Roe Basalts and Hardey Formation across both projects which are prospective for conglomerate hosted gold.. The Company is currently preparing a program to map the geology across the prospective areas.
Overall, the Macarthur tenement package provides access to highly prospective ground in a known lithium, gold and base metals province for FEL within proximity to Port Hedland, Marble Bar and Nullagine.
Figure 1:
https://www.irw-press.at/prcom/images/messages/2019/46744/0383 - Macarthur Lithium Project Earn-in_v5_PRCOM.001.jpeg
Figure 2:
https://www.irw-press.at/prcom/images/messages/2019/46744/0383 - Macarthur Lithium Project Earn-in_v5_PRCOM.002.jpeg
Schedule 1:
TenementStatuJurisdiProject HolderHolder1ShCurrent Area Expiry DRent
s ction 1 ares Area Unit ate Amount
%
E45/4685LIVE WA MARBLE BAR MACL 100 11 SB 11/01/20$1,496.00
22
E45/4693LIVE WA INDEE MACL 100 15 SB 20/11/20$2,040.00
22
E45/4702LIVE WA HILLSIDE MACL 100 41 SB 19/11/20$5,576.00
22
E45/4708LIVE WA PANORAMA MACL 100 27 SB 20/11/20$3,672.00
22
E45/4709LIVE WA PANORAMA MACL 100 22 SB 20/11/20$2,992.00
22
E45/4710LIVE WA HILLSIDE MACL 100 22 SB 19/11/20$2,992.00
22
E45/4711LIVE WA HILLSIDE MACL 100 40 SB 19/11/20$5,440.00
22
E45/4732LIVE WA PANORAMA MACL 100 43 SB 20/11/20$5,848.00
22
E45/4735LIVE WA STRELLEY MACL 100 5 SB 20/11/20$680.00
GORGE 22
E45/4747LIVE WA HILLSIDE MACL 100 2 SB 20/11/20$272.00
22
E45/4764LIVE WA MARBLE BAR MACL 11 4 SB 9/08/202$544.00
2
E45/4779LIVE WA PANORAMA MACL 100 33 SB 15/01/20$4,488.00
23
E45/4824LIVE WA PANORAMA MACL 100 65 SB 4/12/202$8,840.00
2
E45/4848LIVE WA TAMBOURAH MACL 100 1 SB 13/12/20$341.00
22
E45/4903LIVE WA HILLSIDE MACL 100 12 SB 2/01/202$1,632.00
3
E46/1114LIVE WA NOREENA MACL 100 35 SB 9/11/202$4,760.00
DOWNS 2
E46/1115LIVE WA NOREENA MACL 100 21 SB 9/11/202$2,856.00
DOWNS 2
E46/1210LIVE WA NOREENA MACL 100 14 SB 1/07/202$1,904.00
DOWNS 3
E45/5324LIVE WA NORTH MACL 100 4 BL 4/04/202$544.00
TAMBOURAH 4
$56,917.0
0
Australian Securities Exchange Code: FEL
Ordinary Shares:
393,627,963
Unlisted Options:
20,000,000 at $0.045 Exp 31/05/2020
5,625,000 at $0.03 Exp 13/03/2021
3,125,000 at $0.03 Exp 12/04/2021
1,250,000 at $0.03 Exp 8/05/2021
Board of Directors:
Tony Sage
Non-Executive Chairman
Kenneth Keogh
Non-Executive Director
Nicholas Sage
Non-Executive Director
Contact:
www.felimited.com.au
32 Harrogate St, West Leederville
Western Australia 6007 Australia
Telephone +61 8 6181 9793
Email info(at)felimited.com.au
Fe Limited is an Australian domiciled mineral resources exploration and development company.
Fe Limited
ABN: 31 112 731 638
Yours faithfully
FE LIMITED
Tony Sage
Non-Executive Chairman
Leseranfragen:
" alt="Medigene AG: Medigene reports financial & business results for the first three months of 2019
Datum: 14.05.2019 - 07:45 Uhr
Sprache: Deutsch
News-ID 592465
Anzahl Zeichen: 13346
contact information:
Town:
Wien
Kategorie:
Business News
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