Market Herald logo

Subscribe

Be the first with the news that moves the market
  • 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.

RFR by the numbers
More From The Market Herald
Cavalier Resources (ASX:CVR) - Executive Chairman, Ranko Matic

" Cavalier Resources (ASX:CVR) begins PFS at Crawford

Cavalier Resources (ASX:CVR) has begun a pre-feasibility study (PFS) at the Crawford Gold Project within the…
The Market Herald Video

" Emerald Resources (ASX:EMR) reports “exceptional” drill results from Neptune, WA

Emerald Resources (ASX:EMR) has reported “exceptional” drill results from the Neptune gold prospect in Western Australia.
The Market Herald Video

" Atomos (ASX:AMS) reports record FY22 sales following strong Q4

Atomos (ASX:AMS) Q4 results boost FY22 unaudited revenue to in excess of $82 million.
The Market Herald Video

" iTech Minerals (ASX:ITM) progresses testwork for PSG production at Campoona

iTech Minerals (ASX:ITM) has produced a 42-kilogram bulk sample of total graphitic carbon (TGC) concentrate from…