A-Cap Resources Ltd. secured a 12-month right to purchase ML 80098, a nickel-cobalt project in Queensland, Australia, from ARC Marlborough Pty. Ltd.

The company will pay a A$300,000 option fee and complete a work program and project feasibility study under the binding term sheet. To acquire the project, A-Cap will pay A$4 million cash and issue A$6 million of shares within two years of exercising the option.

A-Cap, which owns the Letlhakane uranium project in Botswana as its core asset, said March 23 that it is looking to diversify its mineral portfolio into cathode materials production and supply to the battery industry.