Currently unlisted New Energy Metals Ltd (NRG) has signed a binding heads of agreement with Zenith Minerals Ltd to purchase its Fraser Range tenement for $100,000. Zenith have backed the future production of metals on the site by retaining a 1.5% net smelter royalty fee, while still moving its focus to its current gold and copper wholly owned projects.
The sale is conditional on regulatory approvals and more importantly, upon the successful listing via an initial public offering (IPO) of NRG on the Australian Securities Exchange (ASX) within 6 months.
Zenith Minerals report that NRG primary focus is Nickel Sulphide exploration in WA with exposure to the Albany Fraser Orogen and the South West Yilgarn while retaining a proprietary Nickel Sulphide prospectivity database to generate further projects.
Zenith has interests in Queensland (Red Mountain, Flanagans and Develin Creek) and Western Australia (Split Rocks) which continue to perform well. Red Mountain produced positive gold drilling results from Red Mountain in the second quarter and exploration continues at Split Rocks.
In December, Zenith won a 3 graticular blocks of a recent contested ballot for nickel prospective ground within the Fraser Range in Western Australia.
