Aruma Resources Gains After Acquiring Copper, Uranium Projects

Aruma Resources Ltd (ASX: AAJ) shares have surged following the acquisition of a portfolio of copper and uranium projects in South Australia and Queensland.

The company’s acquisition of the following projects is through an all-share deal:

  • Wilan IOCG-Uranium Project in the Olympic Dam precinct in South Australia; and
  • Fiery Creek Copper Project and Bortala Copper Project in the Mt Isa region of Queensland.

Watch: Aruma Resources MD Glenn Grayson Tells JustStocks Video Of New Uranium And Copper Projects Acquisition

Pre-eminent mineral precincts

The high-potential exploration projects are located in two of Australia’s pre-eminent, active mineral precincts.

The Bortala and Fiery Creek Projects are in the world-class Mt Isa copper-belt while the Wilan Project is in the prolific Gawler Craton minerals belt.

All three projects have copper-gold (stratiform and IOCG) discovery potential – along with playa lake and paleochannel uranium targets at the Wilan Project.

Aruma Resources project portfolio including Wilan IOCG-Uranium Project, South Australia and Fiery Creek and Bortala Copper Projects, Queensland.

Aruma shares were last trading ~16% higher following the announcement, at A$0.022.

Copper and uranium focus

The acquisition will see Aruma expand its focus into key, high-demand commodities – copper and uranium.

The company has already successfully completed due diligence over the new projects.

Completion of the acquisition remains subject to Aruma shareholder approval, to be sought at a shareholder meeting to be convened in the near future.

“Company-changing potential”

Aruma Resources managing director Glenn Grayson said: “We are excited about the company-changing potential of this acquisition.

 “In seeking to expand our asset portfolio we have assessed a number of projects against key criteria designed to drive market support for the company and value accretion for shareholders.

 “We see the combination of quality exploration asset portfolio in high-demand commodities, located in active tier-1 mineral belts in progressive mining jurisdictions as the clear right-fit for Aruma Resources.”

What’s next?

On completion of the acquisition, Aruma plans to commence targeted, systematic field work programs across the new projects to define priority drill targets.

It will then progressively drill test priority targets to unlock each project’s full value proposition.

“In tandem with our ongoing focus on our Western Australian assets, we plan to implement targeted field work programs across the new asset portfolio, with a view to defining priority targets and systematically drilling these projects to unlock and maximise their IOCG, uranium and copper potential,” added Grayson.

All-share + NSR deal

As consideration for the acquisition Aruma is to issue shareholders of the vendors, NHM Holdings (Australia) Pty Ltd:

  • 26.5 million Aruma shares (which will be subject to a 6-month voluntary escrow from date of issue);
  • Up to 52.5 million options exercisable at a nil exercise price on meeting defined milestones; and
  • Aruma will pay a 2% NSR (net smelter return) to NHM shareholders over any minerals extracted and sold from the new projects.

 

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