announcement out sale of dundas tenement SALE OF DUNDAS EL 21/2004
The Directors of Discovery Nickel Limited (ASX:DNL) are pleased to announce
that terms have been agreed with Stellar Resources Limited for the sale of the
Dundas Exploration Licence, EL 21/2004, situated in Western Tasmania.
Highlights
• Dundas EL 21/2004 to be sold to a wholly owned subsidiary of Stellar
Resources Limited
• Consideration for EL 21/2004 is 300,000 Stellar Resources Shares
(currently A$0.32/share).
• DNL will retain a 2% Net Smelter Return royalty
Australian Exploration Portfolio
Due to initial success with the on-going drill program on DNL’s 100% owned
Maun Copper Project in NW Botswana, the Company has decided to joint
venture or sell a number of its Australian exploration licences. This
rationalisation of the Australian exploration portfolio will allow DNL to focus on its
core assets in Botswana, diverting greater resources to the development of these
advanced projects, while decreasing the holding costs of DNL’s Australian
tenements. The rationalisation of DNL’s Australian exploration portfolio will
assist with the fast tracking of the assessment of the inferred copper resources
on the Maun Copper Project.
Dundas EL 21/2004
The Dundas exploration licence, EL 21/2004, is an area of 12km2 covering a
discrete magnetic anomaly with strong similarities to the magnetic anomaly
associated with the nickel mineralisation at the Avebury nickel deposit west of
Zeehan in Western Tasmania. Stellar Resources will issue to DNL 300,000
Stellar shares in consideration for the purchase of EL 21/2004 and will grant DNL
a 2% net smelter return royalty over any production sourced from EL 21/2004.
Commenting on the sale of the Dundas EL Discovery’s Managing Director, Mr
Jeremy Read, said that DNL was looking to capture value from its Australian
exploration portfolio, at a time of historically high commodity prices, while
retaining exposure to exploration success through retained net smelter return
royalties.
“The Dundas tenement covers a quality Avebury nickel target and we are
pleased to agree with Stellar the terms for the sale of the tenement,” Mr Read
said.
“We will continue to look to capture value from our Australian assets allowing us
to increase our focus on our advanced Botswana projects” he said.
The sale of EL 21/2004 is subject to the approval of the Tasmania Mines
Minister.
Further information about DNL’s Australian exploration projects can be found at
www.discoverynickel.com.au
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DNL
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