- IGO (IGO) agrees to acquire 100 per cent of the Silver Knight nickel-copper-cobalt sulphide deposit from the Creasy Group
- Silver Knight lies some 35 kilometres northeast of the company's Nova operation in Western Australia's Fraser Range
- IGO plans to update resource and reserve estimates at the deposit, progressing infill drilling, regulatory approvals and a native title mining agreement
- Further, IGO has agreed to form a 65:35 joint venture with the Creasy Group, covering exploration tenements around Silver Knight, for $45 million cash
- Shares are up a slight 1.5 per cent at $9.07 each at 4:04 pm AEST
IGO (IGO) has penned a binding deal with entities owned by Mark Creasy to acquire 100 per cent of the Silver Knight deposit in Western Australia.
The nickel-copper-cobalt sulphide deposit was discovered by the Creasy Group in 2015 and is situated some 35 kilometres northeast of IGO's Nova operation.
IGO is planning a work program to progress infill drilling at Silver Knight once the transaction is finalised, in addition to pursuing regulatory approvals and a native title mining agreement.
In light of the upcoming work, the company intends to update the market on revised resource and reserve estimates following completion of the above activities.
Joint venture partnership
In parallel, IGO has agreed to form a joint venture (JV) with Creasy Group, covering a portfolio of exploration tenements surrounding Silver Knight, for a cash consideration of $45 million.
The split will see IGO take a 65 per cent stake in the JV tenements, with Creasy to be served the remaining 35 per cent slice.
IGO Managing Director and Chief Executive Officer Peter Bradford said the company was pleased acquire Silver Knight and the additional JV tenure.
"The Silver Knight discovery not only validated the potential for the Fraser Range to host multiple commercial nickel-copper sulphide deposits but also provides a secondary source of feed for the Nova processing plant," he said.
"Our aim is to fast-track the detailed assessment and permitting of Silver Knight in order to commence first pre-mining activity on the site by 2023."
The parties will finalise full-form documentation in respect of the transaction by the end of September, with completion of the deal set to occur five days thereafter.
Shares in IGO were up slightly by 1.5 per cent to $9.07 at 4:04 pm AEST.