Shree Mishra
2 min read
Kingfisher Mining has signed a binding term sheet to divest its entire stake in 12 exploration licences in Western Australia’s Gascoyne region to Dreadnought Exploration, a subsidiary of Dreadnought Resources.
The transaction, valued at A$2m ($1.42m), will be settled through the issuance of fully paid ordinary shares in Dreadnought Resources.
Additionally, Kingfisher could receive up to A$1.5m in performance-based cash payments contingent on resource definitions.
Kingfisher retains a significant stake in the rare earth sector through its shareholding in Dreadnought and will benefit from future milestone cash payments.
The divestment is part of a strategic realignment intended to bolster Kingfisher’s financial position and accelerate exploration efforts in New South Wales (NSW) amid favourable commodity market conditions.
The Copper Blow project near Broken Hill stands out as a key focus within Kingfisher’s NSW portfolio.
Recent drilling at Copper Blow has revealed the extension of high-grade copper-gold mineralisation over a 600m strike length.
Significant assay results include intersections such as 13m at 1.2% copper and 0.26 grams per tonne gold from 23m from 25CBRC_073.
Under the terms of the sale agreement, Kingfisher will transfer full legal and beneficial ownership of the tenements, along with all relevant mining information, to Dreadnought.
The agreement encompasses two performance milestones. Kingfisher stands to earn A$500,000 if an inferred Joint Ore Reserves Committee resource exceeding ten million tonnes (mt) at 1% TREO is announced on any tenement by Dreadnought. A further A$1m is payable upon defining more than 20mt at the same grade criteria.
Settlement of this transaction is subject to standard conditions such as regulatory approvals and third-party consents.
Pareto Advisory, as an independent third-party consultant, will be compensated with A$20,000 in cash and Dreadnought Resources shares valued at A$60,000 for providing introduction and facilitation services.
Kingfisher managing director Chris Bittar said: “This transaction is a win-win for Kingfisher. It immediately frees up vital funds to focus our energy and resources on developing our exciting NSW copper, gold, silver, zinc and lead projects.
“We have always believed in the potential of the Gascoyne, but we recognise that these tenements are better served as part of a larger, unified project where the true value of the assets can be unlocked in a more efficient and timely manner.”
In August 2024, the company commenced co-funded diamond drilling at Mick Well carbonatite targets in the Gascoyne region.
