Archer Materials makes further progress with sale of Eyre Peninsula tenements to Baudin Minerals

Archer Materials Ltd (ASX:AXE) (OTCMKTS:ARRXF) (FRA:38A) has received a Notice to Proceed to Completion regarding the sale of its mineral exploration licences on South Australia’s upper Eyre Peninsula from the buyer Baudin Minerals Pty Ltd.

This follows Baudin completing its due diligence enquiries and satisfies the Notice to Proceed condition.

Archer has lodged with the South Australian Government the appropriate forms for the grant of Ministerial consent for the sale.

The tenements are on South Australia’s upper Eyre Peninsula and host the Kelly Tank Kaolin Project, the Jamieson Tank Manganese Project as well as numerous copper-gold targets.

Background

The sale and purchase of the tenements are subject to satisfaction or waiver of the following three conditions precedent –

• The buyer has satisfied itself as to its due diligence enquiries and issuing a Notice to Proceed and paying the amount of $100,000 to Archer;
• The South Australian Government approval to the sale of the tenements; and
• The buyer listing on a stock exchange.

Completion occurs on the earlier of the tenth business day after the cut-off date, and such other date agreed between the buyer and Archer.

Metallurgical test-work 

Archer is aware that the buyer has been undertaking detailed geological and metallurgical test-work on the Kelly Tank Kaolin Project with the aim of developing a high purity alumina (HPA) project.

The company previously announced an HPA exploration target at Kelly Tank and Bunora prospects that does not include additional HPA prospects outside of the exploration target area.

In addition to the HPA work, the buyer has advised that it intends to actively explore the tenements for copper and gold after it successfully lists on a stock exchange.

Baudin is planning to list on the ASX later this year.

Story by ProactiveInvestors