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- Blaze International (BLZ) has entered into share sale agreements to acquire Hammerhead Exploration and Iconic Minerals
- Through these acquisitions, the company will secure a combined six exploration licence applications in WA’s Earaheedy Basin
- Blaze International has received firm commitments to raise $1.5 million through a placement of 50 million company shares
- The proceeds will fund exploration and development of the new tenements and ongoing exploration of the company’s existing assets
- Blaze International is up 2.78 per cent and trading at 3.7 cents per share
Blaze International (BLZ) has entered into share sale agreements to acquire Hammerhead Exploration and Iconic Minerals.
The two conditional share sale agreements are separate, unrelated and binding. Under the agreements, Blaze International will acquire 100 per cent of issued share capital in each of the companies.
Through this double acquisition, the company will secure a combined seven exploration licence applications. Six of these tenement applications are located in Western Australia’s Earaheedy Basin and cover the immediate northern and western strike extension of the recent zinc-lead discovery by Rumble Resources (RTR).
The seventh licence application, E20/979, or “Big Bell South”, covers a three-kilometre-long magnetic feature located south of the Big Bell Gold Mine.
To acquire Hammerhead Exploration and its four tenement applications, Blaze International will start by paying $50,000 cash and a one per cent net smelter royalty. Upon completion of the acquisition, the company will pay 12.5 million shares and 37.5 million options.
This will be followed by the issue of another 12.5 million shares and 12.5 million options, when two out of the three Earaheedy Basin tenements are granted. When the Big Bell tenement is granted, Blaze International will issue one more round of 12.5 million shares and 12.5 million options to Hammerhead Exploration.
To acquire Iconic Minerals and its three tenements, the company will start with payment of $50,000 cash and a one per cent net smelter royalty. Upon completion of the acquisition, Blaze International will issue 10 million shares and five million options.
Once two out of the three tenements are granted, the company will issue another 10 million shares and five million options to Iconic Minerals.
Blaze International’s Technical Director, Simon Coxhell, commented on the company’s acquisitions.
“The tenements subject to acquisition by Blaze have been carefully and geologically targeted on the most prospective units within the Earaheedy Basin,” he said.
“The opportunity to explore and develop these highly prospective areas represents a wonderful addition to the Blaze tenement portfolio,” he added.
In related news, Blaze International has received firm commitments to raise $1.5 million, through a placement of 50 million fully paid ordinary company shares. The shares will be issued at three cents each, and with one free attaching option for every two shares bought.
The proceeds from this placement will be used for the exploration and development of the newly acquired tenements, following the grant of the applications. Some funds may also help to advance the ongoing exploration of the company’s existing exploration assets.
Blaze International is up 2.78 per cent, trading at 3.7 cents per share at 12:26 pm AEST.
