Woomera Mining Ltd. entered into a heads of agreement to purchase an 80% interest in Cazaly Resources Ltd.'s Mount Venn gold tenements in the northeastern goldfields of Western Australia.

The company said May 23 that it will acquire 100% of Cazaly unit Yamarna West Pty. Ltd., which holds the tenements, and then transfer a 20% undivided interest to Cazaly.

Woomera will pay A$1.0 million cash, issue 7.0 million common shares, solely fund A$1.2 million of exploration within three years and free carry Cazaly to the completion of a pre-feasibility study.

The companies will enter into share acquisition and joint venture agreements by Aug. 20.

The Mount Venn project consists of granted exploration licenses 38/3111 and 38/3150. Additionally, the ground covered by four expired prospecting licenses over the historical Chapman's Reward mine is pending amalgamation into 38/3111.

As part of its 2020 exploration program, Woomera plans to conduct drilling at Chapman's Reward, the Alcurra-Tieyon nickel-copper-cobalt project, the Pilgangoora lithium project and its tenements in the Gawler Carton area.