Kali Metals (ASX:KM1) Expands Pilbara Gold Project with Strategic Acquisition
Strategic Acquisition
Kali Metals Limited (ASX: KM1) has expanded its tenement landholding at the Marble Bar Gold Project by 28.8 km² through the acquisition of E45/6389. This strategic move increases the total project area to approximately 96 km², with the new tenement adjoining Kali’s existing holdings on three sides.
Exploration Update
The newly acquired tenement is situated immediately north and along the strike of Kali’s previously announced 9.5 km long gold-in-soil anomaly, which includes rock chip results of up to 4.0 g/t gold. Based on current exploration data, Kali is optimistic that the mineralisation trend extends into E45/6389 and plans to commence exploration immediately. Additionally, Kali has collected an extra 299 rock chips at Marble Bar and expects to announce the results in the near future.
Transaction Details
The acquisition was completed primarily through scrip consideration, including $20,000 cash and 3,506,276 ordinary shares in Kali Metals. An additional 3,506,276 ordinary shares may be issued if Kali discovers a JORC resource of over 100,000 ounces of gold at a 0.5 g/t cut-off grade within four years of completion, and another 3,506,276 shares if a JORC resource of over 250,000 ounces is discovered under the same conditions. Kali expects the transaction to be finalised within five business days.
Executive Comments
Paul Adams, Managing Director of Kali Metals, commented: “Kali is very pleased to have finalized negotiations to acquire exploration licence E45/6389. With gold prices reaching record highs in April, Kali is maintaining a key focus on the gold prospectivity of its 100%-owned Marble Bar Project in the Pilbara. This new acquisition bolsters Kali’s landholding in this highly prospective gold region, which includes the operating Warrawoona / Klondyke Gold Project. The strategic rationale for the acquisition is not only that our exploration team is hopeful our 9.5km gold-in-soil anomaly continues into this new tenement, but also that it makes Kali’s entire Marble Bar Project contiguous, which has obvious advantages for exploration access and efficiency. The Company is also looking forward to releasing the results of its most extensive rock chip program conducted at our Marble Bar Project to date, which saw the team collect an impressive 299 rock chips. We hope to announce those assay results in the coming weeks.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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