Today, Global Metals Exploration (ASX:GXN) announced they are acquiring a graphite project in Tanzania through the takeover of Hatua Resources Ltd., a Tanzanian company holding tenements of approximately 1.200 km², adjacent to ASX-listed Syrah Resources Ltd. (ASX:SYR).
Assay results from Injaa Hill returned grades from 8.9% to 10.9% carbon, and next to Injaa Hill, artisanal miners discovered graphite in a trench 2-3m wide and 80 meters long.
Global Metals plans to start mapping, sampling and a geophysical survey, leading to a Reverse Circulation drill program to test the thickness of the carbon zones.
Global Metals Exploration will pay $625.000 in cash and issue approximately 111M shares and 28 million options to acquire shares. If drilling starts within 12 months on each of the tenements, another 55M shares will be issued.
A JORC-compliant resource estimate of at least 500.000 tonnes of at least 7.5%C will lead to the issue of another 111M shares and 55M options.
Shareholder approval will be needed for this transaction, and shareholders are expected to vote on this proposal at a shareholders’ meeting around mid-October.
You can read the entire press release here (pdf).
Disclosure: Global Metals Exploration NL is a sponsoring company. Please see our disclaimer for current positions.
