Zenith Minerals (ASX: ZNC) has signed a binding heads of agreement with unlisted company New Energy Metals Limited (NRG) for the sale of its Fraser Range tenement for $100,000 in the capital of NRG whilst retaining a 1.5% net smelter royalty on any future production of metals from the property.
The sale is conditional on upon the successful listing via an initial public offering (IPO) of NRG on the Australian Securities Exchange (ASX) within 6 months, and other regulatory approvals.
The divestment reinforces Zenith’s focus on its wholly owned gold and copper projects. These currently include projects in Queensland (Red Mountain, Flanagans and Develin Creek) and Western Australia (Split Rocks). Highly encouraging first pass gold drilling results from Red Mountain (14m @ 5.5 g/t from surface) will be the subject of a follow-up program next month along with drilling of gold targets at Split Rocks.
As previously advised, Zenith won a portion (3 graticular blocks) of a recent contested ballot for nickel prospective ground within the Fraser Range in Western Australia.
The Department of Mines, Industry Regulation and Safety has advised Zenith that numerous competing exploration licence applications were resolved via ballot with E28/2779 awarded to its wholly owned subsidiary Black Dragon Energy (AUS) Pty Ltd.
The exploration licence application is located immediately west of Galileo’s (ASX:GAL) Delta Blues nickel target and south west of Legend’s (ASX:LEG) Crean nickel target.