TKM days away from completing zinc-lead project acquisition
Trek Metals Limited (ASX:TKM) has executed a share sale agreement to acquire 100% of the Kroussou Lead-Zinc Project from Battery Metals (ASX:BAT), with the deal expected to be completed in early April.
TKM has been progressing exploration at the project over the past 12 months in a JV arrangement alongside BAT. This exploration positions TKM ready to commence its maiden drill programme at the project in the upcoming dry season in June.
The project, located in the mining friendly African nation of Gabon, contains strongly zinc and lead mineralised rocks at surface along tens of kilometres of strike, as well as large zinc and lead soil anomalies.
As with all minerals exploration, success is not guaranteed — consider your own personal circumstances before investing, and seek professional financial advice.
TKM Managing Director Bradley Drabsch said, “We are very excited to take control of this highly prospective project. Owning 100% provides flexibility in undertaking exploration activities as well as longer term strategic flexibility when considering options for maximising the Project’s value. Kroussou presents us a unique opportunity in a forgotten part of the world that has received precious little attention for its base metals potential in the past. We remain committed to the discovery of a genuine World Class mineralised system at Kroussou and, so far, we have all the ingredients present to do exactly that.
The initial consideration for the acquisition of the Kroussou Project is US$200,000 cash to BAT and US$200,000 of TKM shares with attached options. Deferred consideration will also be paid upon TKM defining a JORC‐compliant Indicated Mineral Resource Estimate of more than 250,000t of zinc + lead, as well a net smelter royalty upon sales revenue.
The deal is expected to be completed in early-April with a maiden drill programme set to begin soon after at the onset of the region’s dry season.