Peak Minerals has signed an agreement to acquire privately listed explorer CU2 WA for $7.5 million to expand its copper foothold.
The acquisition would give Peak control over 31 pending and granted base and precious metal tenements, and control over a previously unidentified copper province in the Meekatharra region in Western Australia.
CU2’s tenements are near Peak’s Copper Hills project which would give the explorer further control over the region.
Peak managing director Wayne Loxton said the acquisition will present a promising opportunity for the company.
“We are excited about the opportunity the acquisition of CU2 presents, and further consolidating our existing tenure in what we view as an exciting new and developing copper province,” he said.
“Development of exploration field programs are at an advanced stage and we plan to be on the ground in the coming weeks.”
Peak has entered a binding agreement to acquire CU2 with the deal subject to shareholder approvals.
The company will purchase CU2 for 100 million shares at 2.5 and 100 million options with a five-cent strike price, which expires at the end of 2023.
The buyout is equal to $7.5 million.
“Through the acquisition of CU2, Peak Minerals would control a significant ground position in the Meekatharra region over potentially a new under-explored copper province,” Loxton said.
“Recent drilling at the company’s Copper Hills project has validated the geological model of a magmatic intrusive system and clearly demonstrated high-grade copper sulphide mineralisation exists within the system.
“Limited previous exploration for copper mineralisation has been completed over the CU2 tenements and the company is excited about the prospectivity of the region.”