Helix Resources Limited (ASX: HLX) has entered into a binding agreement with Alpha HPA Ltd to further consolidate its position in the rich Cobar region of New South Wales.
Under the agreement with Alpha HPA’s 100%-owned subsidiary Solindo Pty Ltd, Helix is acquiring prospective copper tenure, removing of pre-existing Joint Venture restraints and acquiring a new nickel-cobalt opportunity.
The company considers the tenement prospective for ‘Collerina type’ copper/base metal deposits as well as nickel-cobalt mineralisation.
The transaction also extinguishes all ‘deemed’ joint venture rights as well as reduces and standardises the Royalty impost with Alpha HPA to retain a 1.0% NSR Royalty on all metals from the tenements reduced from a 1.5% NSR.
Managing Director, Mike Rosenstreich, said Helix views the acquisition as a strategic opportunity with EL8703 neighbouring EL8768 (former JV tenement) which holds Helix’s CZ Deposit among other advanced targets. Under the transaction with Alpha HPA, the tenement title for EL8768 (currently in the name of Solindo) will be transferred to Helix.
The final element of the transaction is the acquisition by Helix of 100% of the nickel-cobalt Mineral Resource at Homeville and all nickel-cobalt rights previously held by Alpha HPA which applied to Helix’s existing tenements and EL8703. Homeville has an Indicated and Inferred Mineral Resource of 17.9Mt grading at 0.89% nickel and 0.06% cobalt.
Mr Rosenstreich said the company envisages transferring the nickel-cobalt assets and rights into a 100% owned subsidiary to provide flexibility on future funding options such as attracting external investment. After preliminary exploration work and a metallurgical and development review, a broader investment strategy regarding these assets will be finalised.
This is an exciting opportunity for Helix, further our commitment to the Cobar district and seeking to maximise shareholder value,” Mr Rosenstreich said.
“The benefits of the exploration acquisition, the tenement rationalisation and removal/reduction of Royalty and JV rights ensures a more streamlined Collerina project.
“It also includes a non-core nickel-cobalt acquisition which, given current metal prices, appears to be very favourable. By gaining exposure to an existing nickel-cobalt resource and prospects on the doorstep of our existing project suite, this provides us with an interesting opportunity, still very much in the ‘new energy or battery materials’, which we consider value accretive for Helix shareholders, which under this transaction would include Alpha HPA.
“In the interim much of our planned early-stage exploration such as shallow auger sampling is the same whether we are chasing copper or nickel-cobalt.”