Loyal Metals’ acquisition of the Highway Reward copper and gold mine in Queensland has been green-lit by shareholders, with the ASX-listed company gearing $5.8 million in funds for exploration and near-term drilling.
The company has verified past copper-gold assays from roughly 122,000 metres of historic drilling, with a notable past production of 3.65 megatonnes at 5.7 per cent Cu and 250 kilotonnes at 4.5 g/t Au.
Loyal Metals managing director Adam Ritchie said the collaborative efforts of its vendors and the strong support from shareholders has enabled an efficient and smooth acquisition.
“Recognised as one of the highest-grade copper and gold mines globally, and historical data confirming significant remnant resource potential, we look forward to progressing resource evaluation and drilling in the coming months,” he said.
Loyal has also presented evidence of the mentioned significant remnants, with previous copper intercepts including one at 33 metres at 5 per cent Cu, 30 metres at 5.1 per cent Cu, and gold intercepts such as 2 metres at 2 metres at 105.4 g/t Au and another at 10 metres at 17.7 g/t Au.
Shareholder approval was granted on 25 September during the extraordinary general meeting (EGM), with the next step for Loyal to now exercise its option agreement after a submission of its exercise notice.
In July, the company entered into a binding share sale agreement to acquire 100 per cent of Highway Copper Gold Pty Ltd., and now secured, builds on what the company noted the site to have a production history of 3.5 million tonnes at 5.7 per cent copper and 260,000 tonnes at 4.5 g/t gold.
Likewise, it was noted that Loyal is leveraging approximately a 680 per cent increase in copper prices and 1256 per cent in gold prices since the mine’s 1997 feasibility study.
Ritchie said the acquisition “marks an exciting next chapter for Loyal Metals and its shareholders”.
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