Neometals (ASX:NMT) - Managing Director & CEO, Chris Reed
Managing Director & CEO, Chris Reed
Source: Business News
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  • Neometals (NMT) is set to grant Auric Mining (AWJ) gold rights across 21 tenements at its Mt Edwards project in Western Australia
  • Under the proposed agreement, Auric could receive gold rights on 13 tenements and eight tenement applications at Mt Edwards in exchange for approximately $900,000 in cash and Auric shares
  • Auric would also need to cough up $900,000 in exploration costs over two years, oversee rent and rates of the tenements and get the tick of approval from its shareholders for the deal to go ahead
  • Neometals has whole ownership of the Mt Edwards project, which comprises 240 square kilometres in a nickel-sulphide belt 35 kilometres west of Kambalda in Western Australia
  • Neometals shares are up 3.96 per cent to trade at 52.5 cents, while Auric Mining shares are trading in the grey at 19 cents

Neometals (NMT) is set to grant Auric Mining (AWJ) gold rights across 21 tenements at its Mt Edwards project in Western Australia.

The two companies entered an agreement that would see Auric Mining receive gold rights on 13 Mt Edwards tenements and eight tenement applications at the project in exchange for roughly $900,000 in cash and AWJ shares.

Should the transaction go ahead, Neometals would receive $200,000 in cash and $700,000 worth of Auric shares and would also be entitled to a one per cent gross smelter royalty on gold recovered from E15/1583.

Auric will need to cough up at least $450,000 per year on the tenements for two years and will also be responsible for rent and rates for the first two years and 80 per cent thereafter.

Auric shareholders will also need to give the move the tick of approval at its next general meeting before it can go ahead, which is expected at the end of May.

Neometals has whole ownership of the Mt Edwards project, which comprises 240 square kilometres in a nickel-sulphide belt 35 kilometres west of Kambalda in Western Australia.

The project is tipped to host 130,000 tonnes of contained nickel.

Neometals shares are up 3.96 per cent to trade at 52.5 cents, while Auric Mining shares are trading in the grey at 19 cents at 11:47 am AEST.

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