Independence pays $21m to Creasy

Independence Group has agreed to pay $21 million in cash and shares to prospector Mark Creasy to acquire a 70 per cent stake in a series of tenements in the Fraser Range near its Nova nickel mine.

Under the deal, Independence will pay three entities owned by Mr Creasy (Creasy Group) $5.3 million in cash and $15.7 million in shares in exchange for a managing interest in the Southern Hill tenements.

Independence will manage and fund all exploration through to a feasibility study, with the company able to earn a maximum 95 per cent interest in the project.

The tenements are located in close proximity to the Nova nickel project, which Mr Creasy discovered in 2012, and has since been developed into a mine owned and operated by Independence.

Independence has committed about $50 million for exploration in the 2019 financial year, with approximately 60 per cent of that earmarked for exploration at Nova and on the Fraser Range, including the Southern Hills tenements.

Independence managing director Peter Bradford said the acquisition strengthened the company’s position in the Fraser Range.

“The Southern Hills tenements are a core package located proximal to the Nova operation within favourable stratigraphy and structural setting,” he said.

“IGO is committed to discovery and we remain confident that there are further discoveries to be made on the Fraser Range.”

Shares in Independence were off 4.32 per cent at $4.98 each at 330pm AEDT.