Helix Resources has entered into separate conditional binding letter agreements to acquire a 51 per cent interest in a portfolio of copper projects in Western Australia.
The portfolio comprises seven new projects covering 320km2 within the Bryah Basin region, which is known to host volcanogenic massive sulphide copper-gold deposits.
Four of the projects are located on the highly prospective geological trend directly along strike of Sandfire Resources’ DeGrussa copper mine.
The Doolgunna and DeGrussa West tenements specifically provide exposure to 12km of largely unexplored geology with demonstrated contained copper mineralisation located 18km along strike from the DeGrussa copper mine.
“We are excited to announce the acquisition of a portfolio that includes the Doolgunna and DeGrussa West projects, covering the same highly prospective host sequences in which the high grade Degrussa copper deposits occur, formerly mined by Sandfire Resources,” Helix managing director Kylie Prendergast said.
“These transactions are part of our strategy to diversify and expand our copper exploration footprint into the Bryah Basin. The acquisition consolidates key landholdings within one of the most prospective copper regions in Australia and positions Helix for significant exploration upside.”
Under the binding letter agreements with OD4 Tom Price and Omni GeoX, both private companies, Helix could potentially earn up to 90 per cent in each of the projects.
Helix will pay Omni GeoX a $60,000 upfront non-refundable cash deposit and a cash payment of $100,000 for the Doolgunna project.
It will also pay an additional $300,000 cash or 75 million fully paid ordinary Helix shares, the latter of which is subject to shareholder approval.
Upon settlement, Omni GeoX will be granted a two per cent gross revenue royalty interest for Doolgunna’s mineral production.
Helix will also pay OD4 Tom Price a $25,000 upfront non-refundable cash deposit and a cash payment of $180,000 for the OD4 projects.
It will also pay an additional $300,000 cash or 75 million fully paid ordinary Helix shares, the latter of which is subject to shareholder approval.
Once completed, Helix will enter into a two-staged earn-in agreement with both companies, where stage one will bring Helix to 75 per cent ownership and stage two will get the company to 90 per cent ownership.
Helix’s technical team are expected to deploy a multidisciplinary focused approach to exploring the projects, incorporating multielement geochemistry, new geophysics and drill testing. It will start with the Doolgunna-Degrussa West consolidated project, then will test other projects and targets as they are produced.
“With copper and zinc mineralisation already identified in surface samples and geophysical surveys, we believe the Bryah Basin projects represent an outstanding opportunity for Helix,” Prendergast said.
“The staged earn-in structure provides us with a clear path to increasing our interest in these projects as exploration advances.”
Earlier this year, Helix farmed into Legacy Minerals’ copper-gold Central Cobar project in New South Wales.
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