Technology Metals Australia Ltd. acquired an additional tenure adjacent to the northern block of its tenements at its wholly-owned Gabanintha vanadium project in Western Australia.
The tenement, P51/2930, covers 109.2 hectares and adjoins the northern block to the west of the proposed main pit. The company paid A$40,000 cash, issued 200,000 shares, and agreed to a 2% net smelter return royalty on commercial gold production.
Technology Metals said July 4 the acquisition will allow it to establish the processing plant at Gabanintha at a more central location, and have additional area for waste and low-grade ore stockpiles and other infrastructure.
The company will include the new tenement in its assessment of development options under the project's definitive feasibility study, expected to kick off in the current quarter.
A recent pre-feasibility study confirmed Gabanintha as an economically feasible project with a post tax net present value, discounted at 10%, of A$850 million, a 43% internal rate of return, and a 3.4-year payback period.