SMM9, March 4 / PRNewswire-Asianet /-- recently, IGO has signed an agreement with Boadicea Resources to ensure the establishment of ground locations along the Fraser Range province, which is rich in nickel and copper in Western Australia. This includes the mining rights immediately generated by IGO's Nova nickel-copper-cobalt business and the Symons Hill mining rights adjacent to Nova.
IGO will pay $5.5 million in cash to Boadicea and subscribe for $1.5 million of Boadicea shares at 24 cents a share. Through the agreement, IGO will acquire nine Fraser Range units for a five-year exploration period.
Peter Bradford, Managing Director and Chief Executive Officer of IGO, said: "as a major landowner in the Fraser Mountains and operator of Nova operations, IGO firmly believes in the potential of multiple nickel-copper sulphide deposits in the area."
"in particular, the Symons Hill concession area adjacent to the Nova mining lease has so far done relatively little exploration, representing the expansion of the Nova mafic-ultramafic intrusion system. We are keen to explore this field in order to repeat the new star nickel-copper-cobalt mineralization. "
Upon discovery, IGO will pay $50 million in cash to Boadicea. IGO will also pay 0.75 per cent of the royalties for the net income of the smelter from all proceeds in the Fraser Range concession area.
Jon Reynolds, managing director of Boadicea, said: "the agreement with IGO / Newsearch provides a considerable cash injection and a unique opportunity to use the exploration skills of Newsearch within Fraser Range to explore for nickel sulphide mineralization."
IGO will manage Fraser Range assets over a five-year period and pay for all exploration costs.
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