Twenty Seven Co. (ASX:TSC) reports it has entered into an exclusive legally binding farm-in and joint venture term sheet with privately owned Entelechy Resources to acquire up to 100% of the Mt Edon Project in Western Australia.
Signing of the term sheet has granted the company a 120-day exclusive right to undertake a due diligence work program, which will include a 500m, $140,000 reverse circulation (RC) drilling campaign.
Results generated from the campaign will aid in the company’s decision of deciding whether or not to proceed with the farm-in.
The Mt Edon tenement package is considered ‘highly prospective’ for a suite of highly valuable critical metals, including tantalum, caesium, lithium, rubidium, and rare earth elements (REE), as well as containing the Mt Edon pegmatite field, an area known to host swarm pegmatites.
Commenting on the acquisition, TSC Chief Operating Officer, Simon Phillips said: “TSC has undertaken extensive due diligence over recent months to acquire an advanced battery metals exploration asset for shareholders. The Mt Edon project is a compelling and high-quality opportunity for TSC that significantly strengthens our existing focus on critical metals exploration to complement our precious metal portfolio.
“The Mt Edon project is a compelling and high-quality opportunity for TSC that significantly strengthens our existing focus on critical metals exploration to complement our precious metal portfolio”
Mt Edon is located in a premier lithium exploration jurisdiction and with known high-grade lithium mineralisation and historic tantalum production recorded within the tenement package, our technical team is very confident we can unlock the full potential of this asset through modern exploration methods and targeted drilling. We look forward to providing further updates on our initial work programs and plans for Mt Edon in due course.”
TSC also notes that the proposed 500m RC drilling campaign will investigate the historical anomalous rock chip sample locations and any related zonation of nine identified pegmatites, with drilling scheduled to take place this month.
Historical rock chip samples and previous drilling were limited due to the COVID-19 pandemic and challenging terrain, with all drillholes conducted being located outside of the tenement package.
In addition, the company will also pay all landholder access fees as part of the due diligence program.
It is believed that the Mt Edon acquisition will strengthen the company’s battery metal strategy, which includes the Rover project in WA, where Rio Tinto Exploration has recently identified a sub-cropping weathered pegmatite prospective for lithium and tantalum mineralisation.
Terms of the stage one farm-in acquisition include TSC paying a sum of $25,000 cash for reimbursement of past expenditure, issuing 250 million ordinary fully paid shares and granting Entelechy a 1% gross overriding royalty on all value of all minerals produced.
TSC is an ASX-listed explorer with two tenure groupings located in Western Australia and New South Wales that are prospective for iron oxide copper gold, base metal, gold and silver mineralisation.
The company is looking to expand their WA based portfolio with the acquisition of the Mt Edon project, which is located about 5km from the Paynes Find Greenstone Belt and is host to many lithium-cesium-tantalum (LCT) pegmatites. The project is located close to existing infrastructure, making it an excellent exploration and mine development target.
With the acquisition of the Mt Edon project now in motion, TSC announces that it will move to engage with a drilling contractor as soon as available.
The proposed farm-in is subject to shareholder approval, due to Entelechy being a related party of TSC as it is 100% owned by privately owned MSCS Infrastructure, which is owned by TSC’s Chairman Mark Caruso’s son.
Images: Twenty Seven Co. Ltd & iStock
