Cazaly Resources has acquired the Lynd base metals-nickel project in Queensland through a farm-in agreement with Anglo American Exploration Australia.
Perth-based Cazaly announced today a farm-in deal to earn 100 per cent of the project in return for providing 2,000 metres of reverse circulation drilling.
AAEA will retain a once-off clawback right to buy back a 30 per cent stake in the project by paying 300 per cent of Cazaly’s exploration expenditure.
If AAEA decides not to use the clawback option, it will receive a 1 per cent net smelter royalty.
The Lynd area covers more than 1,400 square kilometres approximately 200km west of Townsville.
AAEA has identified several priority targets through a five-year exploration program.
At close of trade today Cazaly shares were steady at 16 cents.