Breakthrough Minerals has entered into a conditional binding agreement to acquire Dingo Minerals, and with it, Dingo’s North Queensland copper project.
The Sydney-based company will offer a total of $8 million cash and 41.5 million of its ordinary shares (worth $7.9 million) as consideration. The company will also provide a 1.8 per cent net smelter return royalty and up to 15 million performance rights.
The performance rights are shares that will be distributed in three separate tranches if key development and production milestones are met.
Dingo’s key asset is its right to acquire the North Queensland copper project in the Mt Isa region of north Queensland. Dingo has now entered into a conditional binding agreement to exercise that right, and acquire the project from Aeris Resources.
The project contains a global mineral resource estimate of 18.8 million tonnes, with an average grading of 1.07 per cent copper equivalent. It has calculated the project contains 200,000 tonnes of contained copper equivalent metal across the measured, indicated and inferred resource categories.
The company believes there is significant resource and exploration upside in addition to the known reserves, with numerous untested copper and gold targets featured across the project.
Breakthrough Minerals plans to fund the cash components of the acquisition through a new capital raising. It has firm commitments to raise $8.15 million through the issue of just over 54 million fully paid ordinary shares at $0.15 each.
Completion of the placement and the acquisition are subject to shareholder approval at a meeting to be held in December.
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