Impact Minerals (ASX: IPT) signed a non-binding MoU with Castillo Copper (ASX: CCZ) and Squadron Resources, both also holders of large tenement packages around the Broken Hill mine, to form the new Broken Hill Alliance.
In a press release, the companies said that Impact will contribute the rights to silver-lead-zinc Broken Hill-style mineralisation and other associated styles of mineralisation to the Alliance.
The MoU is an initial six-month agreement to market the Alliance’s ground holding to potential strategic partners, with the marketing to be led by Castillo. If a suitable partner is found, then the three parties will form a special purpose vehicle which will acquire the relevant tenements and metal rights from the three parties in return for equal shareholdings (33.3% each) in the new SPV company.
“With palladium and rhodium yet again reaching record prices late last week and now being well funded following our recent successful capital raising, we are gearing up to return to exploration at our unique Broken Hill project where our previous drilling there has delivered exceptional grades of all six platinum group metals (palladium, platinum, rhodium, ruthenium, osmium and iridium), not to mention gold, nickel and copper as well,” Mike Jones, Impact Minerals’ managing director, said in the media brief.
The Broken Hill Ni-Cu-PGE project is located 20 kilometres east of the Broken Hill silver-lead-zinc mine in New South Wales, in southern Australia, and consists of one Exploration Licence covering 200 square kilometres in the richly mineralised Curnamona Province.