The parties have extended the completion date by a week to Thursday, December 20, 2018.
A binding term sheet signed by Blackham and A-Cap involves the latter farming in to a 75% interest for the cobalt, nickel and associated metals of the Wiluna Cobalt Nickel Project, referred to as Wilconi.
Wilconi has a JORC inferred resource of 80.5 million tonnes at 0.77% nickel and 0.058% cobalt.
This transaction is consistent with Blackham’s stated strategy of divesting non-core assets allowing it to focus on its Matilda-Wiluna Gold Operation in Western Australia.
A-Cap will acquire an initial 20% JV interest by making a cash payment to Blackham of $2.8 million within two days of the parties entering into the staged JV agreement.
On making the payment A-Cap will also acquire third-party exploration data for a payment of $100,000.
A second earn-in interest of a further 35% may be acquired by A-Cap for a cash payment of $500,000 within a period of 24 months and after incurring minimum expenditure on exploration activities.
The third earn-in interest of 20%, bringing the total JV interest held by A-Cap to 75%, will be subject to completing the project’s definitive feasibility study within 36 months, a cash payment of $1 million and an issue of $1.5 million worth of A-Cap shares.
A-Cap intends to immediately begin a drilling campaign to bring existing inferred resources at Wilconi into JORC 2012 standard.