Carnaby Resources has entered into a binding asset sale agreement with Chinova Resources to acquire the Trekelano copper-gold deposit.
The deposit is strategically located within a 20km radius of Carnaby’s Greater Duchess Project deposits, enhancing the company’s resource base.
Carnaby will acquire a 100% interest in three mining leases, ML90128, ML90125 and ML90183, under the agreement.
To fund the acquisition and related activities, Carnaby has secured commitments to raise approximately A$17m ($11m) through a two-tranche placement of 54.8 million new shares at $0.31 per share.
Glencore International has agreed to subscribe for 10.7 million shares in tranche one. Additionally, Carnaby’s directors will subscribe for $500,000, subject to shareholder approval.
The funds will cover acquisition costs including stamp duty and estimated rehabilitation cost bonds, and support the Greater Duchess Pre-Feasibility Study.
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This includes integrating Trekelano into the study, exploration, resource growth drilling and general working capital.
Carnaby has also signed a tolling and offtake term sheet with Glencore for the Greater Duchess Project.
Completion of the acquisition is contingent on conditions such as tenement transfer approval from the Queensland Department of Resources, including environmental bond de-amalgamation approval from the Queensland Department of Environment, Science and Innovation.
Carnaby has paid a A$3m deposit to be held in escrow until completion of the transaction. Upon completion, a final cash payment of approximately A$6m will be made to Chinova.
Trekelano, located 15km from Duchess, is a high-grade copper resource with an inferred JORC 2012 Mineral Resource Estimate of 5.2 million tonnes at 1.39% copper, 0.36 grams per tonne of gold and 1.64% of copper equivalent.
This acquisition is expected to increase the potential annual production target and extend the open-pit target mine life, providing a fast track to production.
