Cassini to enter West Arunta project

Cassini Resources has resolved a share sale agreement to acquire 75 per cent of Crossbow Resources, the 100 per cent owner of the West Arunta X17 project in the Gibson Desert.

The company will look to explore the area for gold and base metal deposits.

“We see the X17 project as an exciting, highly prospective greenfields exploration prospect,” Cassini managing director Richard Bevan said.

“The project has been generated through the same rigorous exploration targeting process as our West Musgrave project.”

In a four stage transaction, Cassini will firstly pay an option fee of $100,000 to existing Crossbow shareholders for early exploration rights before it decides on further progression of the transaction.

At the company’s choice, Stage 2 will commence and see a cash payment of $200,000 and shares to the tune of the same amount paid to Crossbow for the 75 per cent acquisition, with options over 7.5 million Cassini shares with a 134 per cent exercise price of the determined price of Cassini shares.

Cassini may subsequently increase its interest through further cash and share payment optional transactions.

“Our company is proud of our simple, no nonsense approach to exploration,” Cassini chairman Mike Young said.

“We have clear, simple milestones that support a progression to discovery as can be seen with the success at the West Musgrave project where we developed then proved up a geological model.”

“The Crossbow team are very excited to be partnering with Cassini on X17 in the West Arunta, following on from their solid and effective work in the West Musgrave,” Crossbow director Greg Down added.

Shares in Cassini are trading at 3.5 cents per share, a 17 per cent increase after coming off a voluntary trading halt as of 10.45am, WST.