- Rafaella Resources (RFR) is acquiring two projects from fellow ASX-lister Chase Mining (CML)
- The company will buy the Alotta and Lorraine projects in Quebec, Canada for $100,000 in cash and $500,000 in shares
- Alotta and Lorraine sit adjacent to Rafaella’s existing Midrim and Laforce projects — all of which are prospective for PGM, nickel and copper
- COVD-related travel restrictions prompted Chase to sell off the Canada-based projects but they consolidate Rafaella’s portfolio in a “productive yet under explored” region
- RFR shares are trading steady at 4.1 cents and CML is also trading steady at 1.2 cents at 2:01 pm AEST
Rafaella Resources (RFR) has signed a binding deal with fellow ASX-lister Chase Mining (CML) to acquire two of its projects in Quebec, Canada.
Rafaella will pay Chase $100,000 in cash plus $500,000 worth of RFR shares at a deemed price of six cents per share.
The Alotta and Lorraine projects are made up of 93.2 square kilometres of granted licences and sit adjacent to Rafaella’s existing Midrim and Laforce platinum group metal (PGM)-nickel-copper projects.
Like these existing projects, Alotta and Lorraine are prospective for PGM, nickel and copper which expands Rafaella’s portfolio of PGM and base metals.
The deal also consolidates 157.4 square kilometres of the eastern portion of the Belleterre-Angliers greenstone belt (BAGB) within the Abitibi-Pontiac greenstone sub-province.
From Chase Mining’s perspective, Australian COVID-related travel restrictions meant the company couldn’t attend on-ground exploration activities at Alotta and Lorraine which led the company to “look at how best to extract value from the Quebec project areas.”
Rafaella Resources Managing Director Steven Turner said the acquisition is “extremely exciting”.
“[The acquisition] significantly expands Rafaella’s battery metals position in the BAGB, a productive yet under-explored geological region that is known to host high-grade sulphide mineralisation,” Mr Turner said.
Rafaella Resources plans to undertake exploration at the new projects and its current ones and has engaged Orix Geoscience to manage it.
The company has also elected to terminate the proposed acquisition of the Borralha and Vila Verde tungsten projects in Portugal to allow capital to support the Canada portfolio.
RFR shares were trading steady at 4.1 cents at 2:01 pm AEST. Chase Mining was also trading steady at 1.2 cents.