Allup Silica Limited (ASX: APS) (“Allup” or “Firm”) is happy to announce it has acquired 100% of a sophisticated Helpful Heavy Mineral Sands Challenge close to Eucla, WA.
Highlights
- Superior Helpful Heavy Mineral Sands (VHMS) mission in WA has an indicated and inferred JORC Useful resource (2012) of 280Mt @ 4.8% Heavy Mineral close to floor
- Challenge includes 333 sq km of tenements, 150km east of Norseman within the mining-friendly jurisdiction of Western Australia.
- Potential for expanded MRE by together with outcomes not in present useful resource prolonged, plus prolonged mine life by way of extra drilling.
- Ilmenite, a key titanium mineral, is priced effectively above worldwide silica and kaolin costs at greater than US$300/t1 as a result of rising titanium shortages.
- Robust ilmenite market demand anticipated to proceed as a result of provide deficits and mine closures in Kenya, South Africa, and Mozambique
- Allup plans to give attention to a lower-cost Capex design to fast-track mine improvement and produce a bulk focus.
- Allup will advance PFS and BFS for McLaren with infill drilling, and metallurgical and mineralogical evaluations, to verify mission economics.
- Placement of $360,000 to boost working capital.
McLaren Challenge, WA
McLaren VHMS Challenge (E69/2388 and E69/2386) includes 333km2, positioned on the western facet of the Eucla Basin, adjoining to the Fraser Vary in Western Australia (Determine 1).
McLaren is an advanced-stage exploration mission with an indicated and inferred Mineral Useful resource estimate of 280Mt @ 4.8% Heavy Mineral for 13.5Mt in-situ HM accomplished in 2022.
Allup Silica Managing Director Andrew Haythorpe mentioned: “This Challenge presents a superb alternative for Allup Silica to meet its plan of shifting into manufacturing. Albeit a special sand, the mining and washing processes for ilmenite are much like silica sand, in addition to the near-surface mineralisation and low strip ratios. Nevertheless, the upper product worth and decrease delivery volumes current a compelling alternative for improvement.
Due to the earlier work accomplished and the more and more excessive worth of titanium minerals, this chance presents a quicker and better confidence pathway for Allup Silica and its shareholders. The bottom is accessible in all seasons of the yr, permitting for extra speedy progress. Infill drilling and additional metallurgical work is deliberate to begin as quickly as practicable in order that we will advance a Pre-Feasibility Examine and transfer onto a Bankable Feasibility Examine for the mission.”
Determine 1: Location of McLaren Helpful Heavy Mineral Sands Challenge
Acquisition Consideration for 100% of the McLaren VHM Challenge
The Firm has agreed to pay the next consideration:
- A$150,000 in money for 100% of ELs
- Allup grants a 1.5% Royalty to the distributors (Westover Holdings Pty Ltd and Wild Facet (WA) Pty Ltd)
- Allup will concern 2m choices exercisable at 20c on or earlier than 5 years from concern, with consideration of
- $0.001 per APS share, with a vesting situation being completion of a Bankable Feasibility Examine and the Ilmenite focus gross sales exceeding US$500/t from the Challenge
- 4,241,571 shares upon completion of the Pre-Feasibility Examine (PFS); (PFS Milestone) and
- An additional 4,300,583 shares will likely be issued upon completion of a Feasibility Examine (FS Milestone).
The PFS Milestone is happy upon completion of a Pre-Feasibility Examine on commercially viable phrases and different standards that the Events agree in writing.
Within the occasion that the PFS Milestone just isn’t achieved inside 24 months, the Events conform to enter into good religion negotiations for a interval of 5 enterprise days with a view to agree another foundation on which the PFS Milestone Shares (or any half thereof) could also be issued to the Distributors.
Subsequent to the PFS Interval, the Purchaser agrees to make use of all affordable endeavours to conduct a Bankable Feasibility Examine in respect of the Tenements.
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