Acquisition of Brazilian Exploration Portfolio Complete
Sydney, Feb 9, 2024 AEST (ABN Newswire) - Si6 Metals Limited (
ASX:Si6) is pleased to announce the completion of the acquisition of a 50% interest in a portfolio of exploration licences in Brazil ("Licences") from Foxfire Metals Pty Ltd ("Foxfire Metals") ("Acquisition"). Foxfire Metals is a diversified exploration company focussed on the discovery and development of critical minerals in underexplored regions of Brazil.
Key Highlights
- Acquisition of 50% interest in Brazilian Exploration portfolio from Foxfire Metals completed
- Projects include 10 exploration licenses comprising ~17,000 hectares in prime Brazilian exploration locations hosting world-class REE Ionic Adsorption Clay deposits and significant lithium spodumene resources
- First phase exploration program to commence at Caldera REE Project this month with initial activities in the Lithium Valley to follow later in 2024
- The transaction includes access to Foxfire's highly experienced in-house technical team
The Acquisition completed on 8th February 2024. At completion:
1 Si6 acquired all of the shares in Brazilian Ventures Pty Ltd, which held a 50% interest in the Licences pursuant to a Joint Venture Agreement with Foxfire Metals. Foxfire Metals' wholly owned Brazilian subsidiary has also lodged transfers of the legal ownership of the Tenements to Brazilian Ventures' wholly owned Brazilian subsidiary with the relevant regulatory authorities in Brazil.
2 Si6 issued to Foxfire Metals 209,000,000 fully paid ordinary shares and 209,000,000 options exercisable at $0.01 on or before 30 June 2025 with a piggyback option to be issued for each option exercised exercisable at $0.02 on or before 30 June 2027. The shares and options are subject to a 12-month escrow period in accordance with the requirements of the ASX Listing Rules.
Managing Director, Jim Malone commented,
"This is a great milestone for Si6 and its shareholders, which now include Foxfire Metals, who we welcome and look forward to working with. The Company is excited about commencing the initial exploration program at the highly prospective Caldera REE Project located close to significant REE discoveries by ASX-listed companies, Meteoric Resources (ASX:MEI) and Viridis Mining and Minerals (ASX:VMM). This program will be closely followed by a program in the Lithium Valley which is host to Latin Resources (ASX:LRS) and Sigma Lithium Corporation (NASDAQ:SGML), to name a few success stories. The Lithium Valley program will take place close to S-Type G4 supersuite granites that are typically known to host lithium in spodumene bearing pegmatites.
We look forward to emulating the success of our peers in both the Caldera area and the Lithium Valley."
With the Acquisition now complete, representatives of Brazilian Ventures and Foxfire Metals will hold an inaugural meeting of the Joint Venture Operating Committee with a view to approving an initial budget and exploration program. Exploration in Brazil is scheduled to commence this month with an initial focus on the Caldera Project in South Minas Gerais.
Foxfire Metals has been appointed as the manager of the Joint Venture. Brazilian Ventures has committed to spend $1 million in the first year of the Joint Venture and free carry Foxfire Metals until completion of a Bankable Feasibility Study.
About Verity Resources Ltd
Verity Resources Ltd (ASX:VRL) owns 100% of the Monument Gold project located near Laverton in Western Australia. This project currently has a JORC-compliant (2012) Inferred resource of 3.257 Mt @ 1.4 g/t for 154,000 ounces Au.
Verity Resources also holds a supply critical metals portfolio via a joint venture that includes rare earth elements, lithium, gold, base and precious metals in Brazil, including licences in the "Lithium Valley" and Pocos de Caldas in the state of Minas Gerais, globally known as prolific lithium and rare earth elements districts respectively. The Company also owns 70% of the Pimenta Project, a potential large-scale REE project in eastern Minas Gerais.
Verity Resources also holds a base and precious metals project in the Limpopo Mobile Belt in Botswana, a district known for hosting major nickel and copper producing operations. The Company's Botswana portfolio contains three flagship projects where high-grade Cu-Ag (Airstrip and Dibete) and a Maiden JORC Inferred Resource (Maibele North) have been discovered. Maibele North currently hosts a JORC (2012) inferred resource of 2.4Mt @ 0.72% Ni and 0.21% Cu + PGE's + Co + Au and is located within 50km of the Selebi-Phikwe mine recently acquired by TSX-listed Premium Nickel Resources Ltd (TSX-V:PNRL).
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