Walkabout Resources Ltd (ASX: WKT) has finalised the acquisition of the highly prospective Northern Ireland exploration portfolio from Lonmin PLC.
The company said the Lonmin exploration portfolio and assets, which it is acquiring for US$100,000, has significant upside potential in minerals such as gold, lithium, and base metals.
The transaction includes a 50% interest in an active gold Joint Venture with UK based gold mining company Koza (UK) Limited in the highly prospective Dalradian Gold Belt, with up to 8.05g/t Au reported in shallow drilling.
Walkabout Executive Chairman Trevor Benson said the said the low-cost acquisition of an extensive exploration portfolio from an international major provides it with an excellent base into one of the most geologically diverse and relatively under-explored regions of the world.
The opportunity to acquire such an extensive high quality exploration portfolio from a major such as Lonmin is indicative of our team’s significant international expertise to assess the geological potential and move quickly to capitalise on these rare opportunities. This acquisition further provides a platform for growth and diversification both geographically and in terms of commodities,” Mr Benson said.
However, Mr Benson added that the Lindi Jumbo Graphite Project remains the company’s flagship project.
“This is now essentially a development project with additional exploration potential and resource extension opportunities within the Mining Licence boundary which will only be exploited once development funding has been finalised.
“The Project continues to advance with the introduction of strategic partnerships to assist in progressing the development of the mine. Walkabout’s continued exploration strategy is to discover new, or extend known deposits in short timeframes.
“Where these demonstrate reduced prospectivity within the forecast value horizon, they are exited early and the Company moves on to assess other opportunities.”
Mr Benson said the opportunity to diversify into the UK came about due to Lonmin PLC divesting from Northern Ireland as a result of an internal restructuring of its exploration assets.
“The Walkabout Board was able to negotiate an exclusive agreement and capitalise on this opportunity to diversify both geographically and in commodities into a rapidly emerging exploration hotspot with potential for lithium, gold, base metals and PGM’s.”