Phoenix buys tenement from Flinders Mines, Copper Range 17:01, Monday, 26 October 2009
Sydney - Monday - October 26: (RWE Aust Business News) - Phoenix Copper Ltd (ASX:PNX) will expand its tenement holdings in the Burra region in northern South Australia when it completes the purchase of a significant tenement adjacent to its Spalding Project. The company has agreed to purchase tenement EL3244 from Flinders Mines Ltd (ASX:FMS), subject to necessary ministerial approval. The 209 sq km tenement is in two parts, the western part lying immediately north of the company's Spalding tenement, EL3686. Copper Range Ltd (ASX:CRJ) had earned a 50pc beneficial interest in certain mineral rights in respect of EL3244. Flinders Mines agreed to sell EL3244 with Copper Range's consent and subject to the surrender of Copper Range's earned mineral rights. Total price for the sale of EL3244 and the surrender of Copper Range's earned mineral rights is: * $50,000 cash (Flinders Mines and Copper Range receiving $25,000 each); * the issue of 250,000 Phoenix Copper shares to each of Flinders Mines and Copper Range; * the grant by Phoenix Copper of a 1.5pc net smelter return royalty (Flinders Mines and Copper Range receiving half each); * the grant by Phoenix to Flinders Mines of access to EL3244 for the purpose of exploring for and, if applicable, mining and processing diamonds, barium, talc and phosphate in accordance with a mineral rights agreement to be signed by completion of the sale.
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Managing director Mr Paul Dowd said the purchase of EL3244 would provide Phoenix with an expanded opportunity to continue its regional approach to exploration in this highly significant yet largely ignored mineral province. "The purchase is significant to our broad exploration objectives and finalises the consolidation of highly prospective tenements in the Burra/Spalding area, where we have commenced a major drilling program over a six month period, but I am particularly excited by the consequences of this purchase," Mr Dowd said. "The eastern block of the new tenement, in conjunction with ELA316/09 (Hallet Hill), provides full cover over any likely NW extension of mineralisation of the historic Monster Mine ore-body and the testing of this is included in the drilling program. "The western block includes historic mines with known geochemical and geophysical anomalies, similar to those that will be the subject of the current drilling program at Spalding and, once ministerial approval has been granted, the program may be expanded to include the new tenement."
Reuters.
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