Magmatic Resources Ltd. secured an option to acquire 100% of E38/2961, also known as the Mount Venn copper-nickel-cobalt project in Western Australia, from Montezuma Mining Co. Ltd.
Under the binding agreement, the company will pay A$250,000 in cash and issue A$425,000 worth of common shares.
Magmatic will pay an additional A$350,000 in cash and A$350,000 in shares on delineation of a JORC 2012-compliant mineral resource of 20 million tonnes of at least 1% copper equivalent.
A further A$350,000 in cash and A$350,000 in shares will be paid if the company takes a decision to mine. Montezuma will retain a 2.0% net smelter royalty on production, which can be bought back for A$5.0 million, according to the March 14 release.
Magmatic is also required to spend a minimum of A$500,000 on exploration within the first 18 months.
Previous rock chip sampling along the 7-kilometer strike length at E38/2961 identified copper-bearing gossans with assays of up to 24% copper, 1.89% nickel, and 0.18% cobalt.
Magmatic intends to soon kick off field work including reconnaissance and reprocessing survey data.
