- Trek Metals (TKM) has signed a term sheet to acquire ACME Pilbara, securing it the option to buy a prospective gold portfolio in the Pilbara
- The portfolio comprises of the Pincunah Gold Project west of Marble Bar and the Jimblebar Gold and Copper Project to the east of Newman
- Trek Metals has 28 days to decide if it wishes to exercise the option and will review the technical database and historical drilling as part of due diligence
- The company has also received firm commitments for a $1 million two-tranche placement, the second tranche of which requires shareholder approval
- Trek Metals share price closed 9.3 per cent lower today at 4.9 cents each
Trek Metals (TKM) has signed a term sheet to acquire ACME Pilbara, securing it the option to buy a prospective gold portfolio in the Pilbara.
The portfolio comprises of the Pincunah Gold Project west of Marble Bar and the Jimblebar Gold and Copper Project to the east of Newman.
Trek Metals will review the technical database and historical drilling as part of due diligence and has 28 days to decide if it wishes to exercise the option.
Trek Executive Director John Young described securing the portfolio in the exploration hotspot as a potential “game-changer.”
“The Pilbara is currently one of Australia’s exploration hot-spots thanks to the extraordinary success of De Grey Mining with its spectacular Hemi discovery, which represents a new style of intrusive-related gold mineralisation for the district,” John said.
“The Hemi discovery has sparked a resurgence of exploration activity across the Pilbara and, through this acquisition, we have the opportunity to become an active explorer in the heart of this emerging district at a time of record gold prices,” he continued.
“We will target moderate to high-grade gold opportunities within the portfolio where we can add substantial value if we can achieve resource definition and make new discoveries, including evaluating the potential for Hemi-style, intrusive-related gold mineralization. There are also significant nickel and base metal opportunities within the portfolio which we intend to evaluate in due course,” John explained.
Pincunah Gold Project
The Pincunah gold project covers 154 kilometres squared and is comprised of one exploration licence and another exploration licence application.
The project contains a six-kilometre long structural corridor which is prospective for gold. Additionally, there are several gold and nickel prospects at Pincunah, which are collectively called the Valley of the Gossans.
Jimblebar Gold and Copper Project
The Jimblebar project covers 111 kilometres squared and is also comprised of one exploration licence and another application.
The project includes a two-kilometre strike length of the old Jimblebar Goldfield and well as the Sunny South Prospect which contains a 600-metres of strike length and where small-scale mining occurred in the 1930s.
The company has also received firm commitments for a $1 million placement which Mr Young explained will enable the acquisition.
“The funding secured through the placement bolsters Trek’s cash position and will allow Trek to exercise the option subject to due diligence and expedite exploration activities at the new projects,” he said.
The two-tranche placement will see the company issue approximately 28.5 million shares at an issue price of 3.5 cents each which represents an 11.2 per cent discount to the 10-day volume-weighted average price.
The second tranche, however, requires shareholder approval and includes $100,000 worth of subscriptions from company directors.
Terms of the acquisition
If Trek Metals satisfactorily completes due diligence and exercises its option to aquire ACME Pilbara it will pay a total consideration of $200,000 in cash and 6,666,667 shares at a deemed issue price of 3 cents each. The vendors will also receive a one per cent net smelter royalty.
Trek Metals share price closed 9.3 per cent lower today at 4.9 cents each.