Suvo Strategic Minerals Limited (ASX: SUV) has completed the tenement purchase for 100% of exploration license application E70/4981, located in the Muchea region of Western Australia.
The company confirmed that all conditions precedent have been satisfied or waived for the purchase of the Muchea Silica Sand Project (previously referred to as White Hill Silica Sand Project).
The Muchea Silica Sand Project comprises pending exploration licence E70/4981 (Tenement Application), located in the Muchea area, (Yeal nature reserve) 50km north of Perth, Western Australia, and is highly prospective for high-quality silica sand.
The project spans an area of ~47km². The targeted Silica sand deposits lie in the Bassendean sand table. These are windblown dune systems that have been created over tens of thousands of years.
The dunes sit above the natural surface of the ground with heights of up to 20m-40m sitting well above the water table. Historical exploration within the tenement area is limited, though the adjoining Muchea Silica Sand tenement (ASX: VRX) has produced some ultra-high grade results where extensive drilling and testing has taken place producing grades of up to 99.93% SiO2 and 40ppm Fe2O3 in the ground, these being reputed as one of the highest known naturally occurring grades in the world.
Suvo has agreed to issue or grant the following royalty interest and deferred consideration to Mr Aaron Banks, the vendor, as set out in the company’s notice of meeting dated 14 September 2022 (Notice), which was approved by shareholders on 21 October 2022:
- Royalty: 4% of the proceeds of gross sales from Product derived from the Tenement Application; b) Deferred Consideration Shares: Subject to development milestones having first been satisfied, issue to the Vendor up to $1,550,000 Shares (Deferred Consideration Shares), in the following tranches: i. Grant of Mining License: Upon the grant of a mining license over any part of the Tenement Application, the number of Shares calculated by dividing $1,150,000 by the greater of: – the 5 Day VWAP; and – $0.15
- Grant of Mining Permit: Upon the grant of all necessary mining permits over any part of the Tenement Application, necessary to commence production (including environmental permits, water licenses, project management plans and mine closure plans), the number of shares calculated by dividing $400,000 by the greater of: – the 5 Day VWAP; and – $0.15 The Deferred Consideration Shares must be issued by 21 October 2027 (5 years from the date of shareholder approval), or the rights to the Deferred Consideration Shares will lapse. The Vendor has agreed to waive his rights to receive the 333,334 unquoted options set out in Resolution 2 of the Notice for $nil consideration.
