Kingfisher Mining has signed a term sheet to transfer its entire interest in 12 exploration licenses in Western Australia’s Gascoyne region to Dreadnought Exploration, a subsidiary of Dreadnought Resources.
The deal, valued at A$2m ($1.42m), will be settled through the issue of fully paid up ordinary shares in Dreadnought Resources.
Additionally, Kingfisher can earn up to $1.5 million in performance-based cash payments based on resource definitions.
Kingfisher retains a significant stake in the rare earth sector through its stake in Dreadnought and will benefit from significant future cash payments.
The acquisition is part of a strategic reorganization aimed at strengthening Kingfisher’s financial position and accelerating exploration efforts in favorable commodity market conditions in New South Wales (NSW).
The Copper Blow project near Broken Hill stands as a key focus of Kingfisher’s NSW portfolio.
Recent drilling at Copper Blue revealed an extension of high-grade copper-gold mineralization along a 600m strike length.
Notable assay results include 13m of 23m from 25CBRC_073 at 1.2% copper and 0.26 grams per tonne gold.
Under the terms of the sale agreement, Kingfisher will transfer full legal and beneficial ownership of the lease, along with all related mining information, to Dreadnought.
The agreement has two phases of activity. Kingfisher stands to earn $500,000 if Dreadnought declares an estimated combined mine reserve of 1 million tonnes (mt) at 1% TREO. A further A$1m is paid for defining more than 20mt with the same grading criteria.
The settlement of this transaction is subject to standard conditions such as regulatory approvals and third party consents.
Pareto Advisory, as an independent third party consultant, will be compensated with A$20,000 in cash and Dreadnought Resources Shares valued at A$60,000 for providing identification and facilitation services.
Kingfisher Managing Director Chris Better said: “This transaction is a win-win for Kingfisher. It immediately frees up vital funds to focus our energies and resources on the development of our exciting NSW copper, gold, silver, zinc and lead projects.
“We have always believed in Gascoyne’s potential, but we know these tires are best served as part of a larger, integrated project where the true value of the asset can be unlocked more efficiently and timely.”
In August 2024, the company began co-financed diamond drilling at the Mike Well carbonatite targets in the Gascoyne region.
