Perth-based Cyclone Metals has added a diversified portfolio of gold, copper, nickel and PGE assets in New Zealand to its roster after completing the acquisition of Grand Port Resources and its wholly owned subsidiaries Midway Resources Limited and Nimitz Resources. Under the terms of the agreement, Cyclone will grant Grand Port 900 million shares and the right to nominate one board member to join Cyclone's Board.
Cyclone now lays claim to half a dozen highly prospective precious and base metal ventures in New Zealand, including the Macraes South, Muirs Reef, Mareburn, Longwood Range, Waikerikeri and Drybread projects, that are all largely underexplored.
According to Cyclone, its new assets span across 1,140 square kilometres and are located near around active mines, facilities and explorers.
The company believes its new ventures sit in prime real estate, with the Cyclone earmarking New Zealand as a leading commodity investment destination, following a series of successful exploration campaigns by other explorers and the approval of a host of new mines.
Cyclone says the move to acquire Grand Port and its promising projects could bolster future success through developing its new assets and building strong contacts in New Zealand.
Following the completion of the acquisition, Cyclone intends to conduct a preliminary mineral resource estimate at Muirs Reef and launch a brace of first pass drilling programs there and at Mareburn.
The Muirs Reef gold project boasts a foreign inferred resource estimate of 222,000 ounces of the precious metal, going 1.34 per cent gold. Cyclone says the project offers significant exploration upside with historic drilling hitting an 11-metre intersection at an impressive 11 grams per tonne gold from 48m. Remarkably, the strike housed an ever-richer 2m component grading a glistening 38.4 g/t gold.
The Mareburn gold project, also appears compelling with a number of initial walk-up extension targets already defined. Previous drill results at Mareburn include a 10m section going 2.4 per cent gold from 38m with a higher-grade mineralised interval going 7.1 g/t gold from 38m.
As part of the deal, Cyclone will fork out 900 million fully paid ordinary shares with the first tranche satisfied by the issuance of 500 million consideration shares and the second tranche satisfied by the issuance of 400 million consideration shares, subject to shareholder approval.
Cyclone also announced it has received $500,000 before expenses from sophisticated investors through a placement at an issue price of $0.005 per share with one free attaching option for every four shares at an exercise price of $0.006.
With a saddlebag full of cash and a bevy of new projects to chase down across the Grand Port projects, it's all hands on deck for Cyclone in NZ.
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By Matt Birney
