Carnaby Resources expands its footprint for the Mount Hope project, enhancing project economics and exploration potential through a strategic acquisition.
Summary
- Carnaby Resources Limited has announced the expansion of its Mount Hope project.
- The company acquired a 51% interest in three sub-blocks surrounding the Mount Hope deposits, with an option to increase to 70%.
- This acquisition allows for larger, optimized open pit development.
- The Scoping Study's release is delayed by one month to May 2024 due to the acquisition.
- The area contains significant exploration potential along a 5km strike of the Mount Hope IOCG corridor.
- Carnaby paid A$4 million in cash and issued 9.091 million shares to Hammer Metals for the initial 51% interest.
- A positive final investment decision will trigger an additional A$5 million payment to Hammer for an extra 19% interest.
Highlights
- Shares on Issue: 162.8M
- Market Cap: $96.9M
- Cash on hand: $18.4M as at 31 December 2024
- Initial acquisition cost: A$4 million cash plus 9.091 million shares
- Option to increase interest to 70% with an additional A$5 million payment
- Maiden interim Mineral Resource Estimate at Greater Duchess: 21.8Mt @ 1.4% CuEq for 315kt CuEq
- Mount Hope copper gold deposit: 10.3Mt @ 1.7%CuEq for 173kt contained CuEq
Positives
- Expansion allows for larger, more economically beneficial open pit development.
- Strong cash position to support project and exploration activities.
- Significant exploration potential along the Mount Hope IOCG corridor.
- Access to highly prospective terrain adjoining current projects.
Negatives
- The acquisition delays the Scoping Study's release by approximately one month.
- Additional cash payment required for increased interest in the project.
Key Dates
- 2 April 2024: ASX Announcement Date
- 31 December 2024: Cash position report date
- May 2024: Revised release date for the Scoping Study
Alerts
- Contains better than expected results: no
- Contains worse than expected results: yes
- Contains expected results: no
- Sentiment: positive
