Godolphin Resources has entered into a binding term sheet with ASX-listed Orange Minerals to offload its Ophir and Wiseman’s Creek projects in New South Wales for a total consideration of $550,000. The projects are prospective for gold and base metals and according to the company, the sale will provide a cash injection that will be funnelled to its nearby Narraburra rare earths project.
The $550,000 transaction price includes a $275,000 cash element and $275,000 in fully paid ordinary shares to be issued by Orange Minerals to Godolphin subject to shareholder approval.
The issue price for the fully paid ordinary shares will be the 10-day volume weighted average price or “VWAP” of Orange Minerals’ shares prior to the date of issue.
Under the agreement, Godolphin will maintain its joint venture interest in the nearby Calarie gold project, which was farmed out to Orange Minerals and falls outside of the duo’s sale agreement.
Godolphin will retain its joint venture interest in the Calarie Gold Project in NSW that was previously farmed out to Orange Minerals and is not part of the sale agreement.
Godolphin Resources’ Managing Director, Jeneta Owens said:“We are very pleased to have entered into this agreement with Orange Minerals. We will continue to acquire additional prospective ground across central west NSW and shift our focus towards the Narraburra Rare Earth Element Project, so this funding will assist our exploration activities there. Data assessment and review of drilling locations are well advanced at Narraburra and we expect to commence drilling in coming months.”
The company is now moving towards a maiden drill campaign at the Narraburra rare earths project with a data review already underway.
The explorer only recently picked up Narraburra after entering into a two-tranche farm-in and joint venture agreement with private exploration outfit EX9 to earn up to a 75 per cent interest in the venture, which sits some 15 kilometres north of Temora in central west NSW. The project takes in two tenements totalling 349 square kilometres, with rare earth mineralisation hosted in a Late Devonian suite of rocks.
Capital Mining Limited, Narraburra's previous owner, previously reported a JORC 2004 compliant inferred resource at the project of 73.2 million tonnes with grades of 1250 grams per tonne zirconium dioxide, 327 grams per tonne rare earth oxides, 146 grams per tonne yttrium oxide, 126 grams per tonne niobium pentoxide, 54 grams per tonne gallium oxide and 118 grams per tonne lithium oxide.
The Government's Critical Minerals Office has branded Narraburra a “critical minerals” project, which means Godolphin could count on the department’s assistance in terms of cash, information and general support as it works to push the project along.
With the world rapidly embracing a move towards cleaner energy, new-energy projects like Narraburra could help reduce the reliance on Chinese-sourced rare earths and prop up the prospects of local mineral players like Godolphin.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
