- AustraliaNorth AmericaWorld
Investing News NetworkYour trusted source for investing success
Far Northern Resources
Pursuit Minerals
Energy Fuels
Brunswick Exploration
- Lithium Outlook
- Oil and Gas Outlook
- Gold Outlook Report
- Uranium Outlook
- Rare Earths Outlook
- All Outlook Reports
- Top Generative AI Stocks
- Top EV Stocks
- Biggest AI Companies
- Biggest Blockchain Stocks
- Biggest Cryptocurrency-mining Stocks
- Biggest Cybersecurity Companies
- Biggest Robotics Companies
- Biggest Social Media Companies
- Biggest Technology ETFs
- Artificial Intellgience ETFs
- Robotics ETFs
- Canadian Cryptocurrency ETFs
- Artificial Intelligence Outlook
- EV Outlook
- Cleantech Outlook
- Crypto Outlook
- Tech Outlook
- All Market Outlook Reports
- Cannabis Weekly Round-Up
- Top Alzheimer's Treatment Stocks
- Top Biotech Stocks
- Top Plant-based Food Stocks
- Biggest Cannabis Stocks
- Biggest Pharma Stocks
- Longevity Stocks to Watch
- Psychedelics Stocks to Watch
- Top Cobalt Stocks
- Small Biotech ETFs to Watch
- Top Life Science ETFs
- Biggest Pharmaceutical ETFs
- Life Science Outlook
- Biotech Outlook
- Cannabis Outlook
- Pharma Outlook
- Psychedelics Outlook
- All Market Outlook Reports
Eastern Iron on Track to Acquire Interest in Mount Cobalt Corridor
The agreement with Heavy Metals Exploration includes an option to acquire 25 percent of the project for a cash payment of AU$150,000 and AU$200,000 worth of ordinary shares.
Australia-based Eastern Iron (ASX:EFE) has entered into a call option agreement with Heavy Metal Exploration to acquire an interest in the Mount Cobalt Corridor project in Queensland, the company announced on Tuesday (August 28).
“The project is in one of the few areas globally with a history of high grade primary cobalt production,” the company said in a statement.
According to the company, previous works in the region were mainly for copper and gold. However, cobalt mineralization was identified and cobalt production of about 800 tonnes (t) at Mt Cobalt occurred in two periods: 1919 to 1943 (778 t) and 1996 to 1997 (21.5t).
Before Eastern Iron can complete the deal to acquire an interest in the copper-cobalt sulphide project, it will have to pay a call option fee of AU$10,000 by September 11.
The agreement will include an option to acquire 25 percent of the project for a cash payment of AU$150,000 and the issue of AU$200,000 worth of ordinary shares.
The deal also considers an option for Eastern Iron to buy 100-percent interest in the asset by launching a farm-in agreement with Heavy Metals and agreeing a royalty payment.
The farm-in agreement will include a stage 1 period, in which the company must spend AU$650,000 on the project within the first 24 months to acquire an additional 35-percent interest in the asset.
To be able to buy the remaining interest, in stage 2, Eastern Iron must spend an extra AU$1.5 million on the project within 3 years after stage 1 is completed.
Meanwhile, Eastern Iron will negotiate a royalty payment, which will include a 0.5 percent net smelter return royalty for Heavy Metal on all the copper produced at the project, capped at 30,000 t and as long as copper prices stay above US$6,000 per tonne.
The deal is expected to close 30 days after receiving shareholder and government approvals.
Aside from Mount Cobalt Corridor, Eastern Iron is evaluating and exploring a number of mineral projects in the eastern states of Australia, including the Nowa Nowa iron and copper project in Victoria.
On Wednesday (August 29), shares of Eastern Iron closed at AU$0.008.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.
Latest News
Outlook Reports
Featured Australia Investing Stocks
Browse Companies
MARKETS
COMMODITIES
Commodities | |||
---|---|---|---|
Gold | 2320.26 | -5.87 | |
Silver | 27.24 | -0.21 | |
Copper | 4.59 | -0.03 | |
Oil | 78.59 | +0.11 | |
Heating Oil | 2.46 | 0.00 | |
Natural Gas | 2.17 | -0.03 |
Investing News Network websites or approved third-party tools use cookies. Please refer to the cookie policy for collected data, privacy and GDPR compliance. By continuing to browse the site, you agree to our use of cookies.
Priscila is originally from Buenos Aires, Argentina, where she earned a BA in Communications at Universidad de San Andres. She moved to Vancouver for the first time in 2010 and fell in love with the city. A few years after she went to London, UK, to study a MA in Journalism at Kingston University and came back in 2016. She enjoys reading, drinking coffee and travelling.
Learn about our editorial policies.