Subiaco-based Syndicated Metals has signed an agreement with ASARCO Exploration to acquire two per cent of net smelter royalties from five tenements in Queensland and one near Exmouth.
The royalty will be acquired for a total consideration of 476,891 ordinary shares in Syndicated, escrowed for six months after issue.
The company said the Kalman South tenement near Mt Isa contains a substantial section of the Kalman molybdenum-rhenium-copper-gold deposit and is considered to have considerable exploration potential for further molybdenum and copper-gold discoveries.
The royalty acquired by Syndicated applies to 100 per cent of all mineral production from the tenement.
See company statement below:
Syndicated Metals Limited (ASX:SMD) "Syndicated" is pleased to announce that agreement has been reached with ASARCO Exploration Company Inc for Syndicated Royalties Pty Ltd (a 100% - owned subsidiary of Syndicated), to acquire the 2% Net Smelter Royalty over EPM13870 (Kalman South), as well as four other tenements held by Syndicated in the Mount Isa region and one tenement held by Syndicated near Exmouth in Western Australia.
The royalty will be acquired for a total consideration of 476,891 ordinary shares in Syndicated, escrowed for six months after issue.
EPM13870 (Kalman South) contains a substantial section of the Kalman molybdenum-rhenium-copper-gold deposit and is considered to have considerable exploration potential for further molybdenum and copper-gold discoveries. The royalty acquired by Syndicated applies to 100% of all mineral production from the tenement.
Syndicated's joint venture partner on EPM13870, Kings Minerals NL (ASX:KMN), holds a 51% interest in EPM13870 and can earn up to a 70% interest by fully funding and completing a final feasibility study by July 2011.
Syndicated takes a very positive view of the potential of the Kalman region and is actively expanding its exploration activities in the Kalman area. The Company recently announced the acquisition of four tenements which significantly bolster its current tenement holdings at its Kalman South and Mount Remarkable projects.
