HIBERNIA Gold has decided to expand its existing interests in molybdenum, reaching an agreement to acquire the Coppin Gap Deposit located in Western Australia’s Pilbara region.
The tenement is held by Kallenia Mines.
The company has agreed to pay $25,000 to acquire an initial 5 per cent plus a six-month option to increase the interest to 90 per cent by paying $750,000 in cash or shares.
The option period can be extended in six-month increments up to four years by further payments of $25,000 per increment.
Molybdenum is a high melting-point alloying metal used in iron, steels and superalloys to enhance hardenability, strength, wear and corrosion resistance. It can be used as a nickel substitute.
According to Hibernia’s announcement, the metal’s price has been on an upward trend for more than two years and molybdenum oxide is currently at a 25-year high of $US17 a pound.
Hibernia’s shares hit $1 on the news. They had been sitting around the mid 80 cent mark.
The Coppin Gap Molybdenum and copper deposit was discovered in 1971 and explored through to 1982 by successive players Anglo American Corporation, Exxon Corporation and Amax Iron Ore Corporation.