Aruma Resources has acquired a portfolio of copper and uranium exploration assets in South Australia (SA) and Queensland.
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In this regard, the company executed a share acquisition agreement to acquire the Wilan IOCG-Uranium Project in the Olympic Dam precinct and the Fiery Creek and Bortala Copper Projects in the Mt Isa region from NHM Holdings (Australia) (NHMHA).
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As per the agreement, Aruma proposes to issue 26.5 million shares to NHMHA shareholders, with a six-month voluntary escrow period.
Additionally, 24.5 million options will be provided, exercisable upon securing necessary approvals for drilling at the Wilan Project.
Another 28 million options are contingent on achieving significant drilling intercepts at any of the new projects.
Moreover, Aruma has agreed to a 2% net smelter royalty to NHMHA shareholders on minerals extracted and sold from the acquired tenements.
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By GlobalDataThe acquisition positions Aruma in two of Australia’s leading mineral precincts, with the potential to develop high-value exploration projects.
Aruma has completed due diligence on the new projects and is now seeking shareholder approval for the acquisition.
Upon completion, Aruma plans to commence targeted field work to define drill targets and test priority areas to realise the full value of the projects.
Wilan Project, located on the Gawler Craton’s eastern side, spans 1,993km2 and is known for hosting mining operations. The company aims to explore for IOCG mineralisation in this region.
On the other hand, Bortala and Fiery Creek Projects are located in the northern Mt Isa copper-belt, are in an under-explored area with several significant copper mines.
The strategic move into these projects is expected to leverage the region’s mining potential and contribute to the company’s growth in the copper and uranium sectors.
Aruma managing director Glenn Grayson said: “We are excited about the company-changing potential of this acquisition.
“In seeking to expand our asset portfolio we have assessed a number of projects against key criteria designed to drive market support for the company and value accretion for shareholders. “We see the combination of quality exploration asset portfolio in high-demand commodities, located in active tier-1 mineral belts in progressive mining jurisdictions as the clear right-fit for Aruma Resources.”
