Godolphin to offload gold and base metals to fund NSW rare earths
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 total consideration of $550,000. The projects show promise for gold and base metals and the company says the sale will provide an injection of cash that will flow to its nearby Narraburra rare earths project.
The transaction price of $550,000 includes a cash element of $275,000 and $275,000 in fully paid common stock to be issued by Orange Minerals to Godolphin subject to shareholder approval.
The issue price of fully paid ordinary shares will be the 10 day volume weighted average price or “VWAP” of Orange Minerals shares prior to the issue date.
Under the agreement, Godolphin will maintain its joint venture stake in the nearby Calarie gold project, which has been awarded to Orange Minerals and does not fall under the duo’s sale agreement.
Godolphin will retain its joint venture interest in the Calarie Gold project in New South Wales, which was previously outsourced to Orange Minerals and is not part of the sale agreement.
We are very pleased to have entered into this agreement with Orange Minerals. We will continue to acquire additional potential land in west central New South Wales and focus on the Narraburra rare earth element project, so this funding will help our exploration activities there. . Data evaluation and review of drill locations are well advanced at Narraburra and we expect to commence drilling in the coming months.
The company is now heading into a first drilling campaign on the Narraburra rare earths project with a data review already underway.
The explorer only recently took over Narraburra after reaching a two-tranche farm and joint venture agreement with private exploration company EX9 to acquire up to a 75% interest in the company, which sits at about 15 kilometers north of Temora in the center-west. NSW. The project comprises two buildings totaling 349 square kilometers, with rare earth mineralization hosted in a suite of Upper Devonian rocks.
Capital Mining Limited, the former owner of Narraburra, previously reported a JORC 2004 compliant inferred resource at the project of 73.2 million tonnes with grades of 1250 grams per tonne of zirconium dioxide, 327 grams per tonne of oxides of rare earths, 146 grams per ton of yttrium oxide, 126 grams per ton of niobium pentoxide, 54 grams per ton of gallium oxide and 118 grams per ton of lithium oxide.
The government’s Office of Critical Minerals has labeled Narraburra a “critical minerals” project, meaning Godolphin could count on the department’s help in terms of money, information and general support as it strives to move the project forward.
As the world rapidly embraces a shift towards cleaner energy, new energy projects like Narraburra could help reduce dependence on Chinese-sourced rare earths and bolster the prospects of local mining players like Godolphin.
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