Ann: Transformational Mt Isa Cu U Acquisition, page-25

NickelSearch Pivots Portfolio and Leadership, Gaining Market Approval





NickelSearch Ltd (ASX:NIS) has outlined a fresh company strategy, and the market has noticed.
Shares in the company are 20% higher in afternoon trade at $0.022, on extremely high volume, and even touched $0.031 during the morning session.

NickelSearch has not only switched post codes, but states, and has acquired a 100% interest in the Mt Isa North Project, Queensland, Australia.

The transaction is through a share sale agreement with current project holders Capella Metals Ltd.
Location is key, with the new portfolio addition 10 kilometres along strike of Glencore’s Mt Isa Mining & Processing Complex.

The complex has pre-mining metal inventory of 255 million tonnes at 3.3% copper.

Companies active in the region include 29 Metals Ltd (ASX:29M), Fortescue Metals Ltd (ASX:FMG), Austral Ltd (ASX:AR1) and Paladin Energy Ltd (ASX: PDN).

Mt Isa North Project potential

The project hosts multiple high-grade, historical copper mines and prospects.
This includes the Surprise Mine, where drilling delivered:

• 23.77 metres at 4.67% copper from 51 metres; and
• 3.66 metres at 9.53% copper from 22 metres.

The Mt Isa region boasts proven geology capable of hosting globally significant deposits, including four of the world’s ten largest zinc-lead-silver deposits.

Uranium potential added to mix

The region also hosts Paladin’s Valhalla project.
Valhalla was discovered in the 1950’s, and is Australia’s third largest uranium resource hosting 148.3 million pounds at 680ppm uranium.

Transaction

NickelSearch has entered into a binding share purchase agreement to acquire 100% of Capella Metals Ltd.
Consideration includes 88.4 million shares to the Capella Vendors, and 15.8 million $0.03 options expiring June 2027.

Capella would then hold 22.7% of NickelSearch.

Bruno Seneque and Richard Maddocks are non-executives of Capella, and post post-transaction will be appointed to the NickelSearch board.

There are conditions in place, including raising sufficient funding.

Funding


NickelSearch has secured commitments to raise $560,000 before costs, and proposes to launch a $2.14 million underwritten non-renounceable entitlement offer.

Proving this is completed, the pro-forma structure would have NickelSearch holding around $4.8 million in cash, with a market cap of $7.6 million.