Park Range Iron Ore Project (100%)

On 11 June 2019, Cazaly had agreed commercial terms for the sale of its 100% owned subsidiary, Cazaly Iron Pty Ltd (Cazaly Iron) to Gold Valley. Cazaly Iron holds the tenements that comprise Parker Range. The agreement with Gold Valley allowed for an initial three-month due diligence exclusivity period, however Cazaly reserved the right to terminate the exclusivity period should it receive another proposal or offer from a third party which is more favourable to Cazaly and its shareholders.

As announced on 21 August 2019, the Company, following the receipt of an unsolicited superior proposal from Mineral Resources Limited (Mineral Resources) to purchase the Parker Range Iron Ore Project (Parker Range), terminated the exclusivity period with Gold Valley Iron Pty Ltd (Gold Valley) under its conditional agreement originally announced on 11 June 2019. 

Following such termination, Cazaly agreed to commercial terms with Mineral Resources for the sale of the assets comprising Parker Range via a binding Heads of Agreement (HOA). The agreement with Gold Valley remained in place whilst Cazaly evaluated the Mineral Resources proposal and its next steps for the sale of Parker Range.

On 30 August 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in their ASX announcements dated 21 August 2019. Cazaly also received the cash consideration of $20 million (ex GST).

Mt Venn Project (100%) 

On 23 May 2019, the Company entered into a Heads of Agreement with Woomera Mining Ltd (Woomera) for the sale of an 80% interest in the Mt Venn Project in the north eastern Goldfields of Western Australia.

The Heads of Agreement provided the framework for a detailed Share Acquisition Agreement and Joint Venture Agreement, which the parties aim to negotiate and execute on or before 20 August 2019. Importantly, the Heads of Agreement specifies key terms which have been agreed and must be incorporated into the final agreements. The Mt Venn project comprises two granted exploration licences E38/3111 and E38/3150 and ground covered by four expired prospecting licences over the historic Chapman’s Reward mine (P38/4149, 4150, 4151 and 4195) which were subsequently amalgamated into E38/3111. The tenements cover approximately 390km² occur over some 50 kms of strike of the Mt Venn Greenstone Belt giving the dominant land position (>90%) over the Belt. The project lies within the Cosmo Newberry Aboriginal reserve and is subject to a Native Title claim by the Yilka people. A Cazaly subsidiary, Yamarna West Pty Ltd, signed a Native Title Agreement with the Yilka People and the Cosmo Newberry Aboriginal Corporation (CNAC) on 28th July 2016. The tenements are highly prospective for gold, nickel and nickel-copper-cobalt deposits. Volcanogenic massive sulphide deposits may also be a possibility based on anomalous zinc, copper, lead, gold and silver in felsic volcanics.

A Share Purchase Agreement (SPA) was executed on 8 August 2019 which was subject to customary conditions for a share acquisition and the good standing of the tenements and will also be subject to Woomera successfully undertaking a fund raising in order to fund the acquisition and to provide capital for exploration. The closing date for completion under the SPA was 20 September 2019. 

On 20 September 2019, both parties announced that they had completed or waived their Conditions Precedent responsibilities as noted in the SPA.

The Company holds the project through its 100% owned subsidiary Yamarna West Pty Ltd. Woomera has agreed to acquire 100% of the shares in Yamarna subject to the key terms and conditions of the Heads of Agreement. 

Prior to the completion date, Yamarna will transfer to Cazaly a 20% undivided interest in the project tenements whilst also entering into an agreement with Yamarna which establishes an unincorporated joint venture (JV)) under which the JV parties will hold the following interests: Yamarna 80% Cazaly 20%

Woomera will be appointed the Manager of the JV and will remain Manager whilst it has a majority interest. 

It should be noted that Sulphide Resources Ltd had previously entered into an agreement for the purchase of Mount Venn but their option to purchase expired in January 2019.

Kaoko Kobalt Project (76%)

The project, in which Cazaly has the right to earn a 95% interest, is primarily prospective for base metal mineralisation over a large area in northern Namibia. The Kaoko project lies in northern Namibia approximately 800km by road from the capital of Windhoek and approximately 750km from port of Walvis Bay. The region has excellent infrastructure and comprises exploration licence EPL6667 (granted in February 2018) and two further applications (EPL 7096 & EPL 7097) which, combined, cover ~1,410km² of tenure.

McKenzie Springs Project (100% – FIN earning 51%)

The project is located immediately south & along strike of the Savannah Nickel Mine (Panoramic Resources Ltd), Kimberley, WA. Prospective ultramafic basal contact extends for ~15km. Work by Cazaly has identified high grade gossan samples returned 12.8% Cu, 1.92% Ni, 0.17% Co. The project is also within 10km of the Hexagon Resources McIntosh Graphite Resource. Reprocessing and imaging of historic VTEM data was completed by Cazaly with several conductor targets potentially representing graphitic units ready for follow up. 

Below is an extract from the Fin Resources Limited ASX release dated 25 July 2019 (ASX: FIN): 

A review of the potential of the McKenzie Springs Project was completed by an external consultant during the June Quarter. The review focused on the work completed by Fin and previous explorers to validate and refine the company’s target so as to drill the best targets at McKenzie Springs. 

The review confirmed that one of the priority targets (MK25) coincides with an isolated gravity anomaly and has the appropriate geological setting to host Ni-Co-Cu occurrences. The target is greatly enhanced by the considerable thickening of magma to other targeted areas within the licence and has reported a similar electromagnetic response to the Savanna Ni-Cu-Co Mine that is located along strike to the NE of the project. 

The external consultant review highlighted the much larger Spring Creek intrusion complex (located in the northern section of the license) which hosts a minor airborne EM anomaly that remains untested, with little modern exploration work done over this area (one drill hole for PGE and a rock chip traverse). It was recommended to extend the geochemistry coverage of the intrusion as well as other areas not previously covered. The Company now considers completing new geochemical survey over the Spring Creek intrusion as essential before prioritising targets for drilling.