Auroch Minerals moving quickly to exploration with Nepean Nickel Project acquisition completed

Auroch Minerals Ltd (ASX:AOU)(FRA:T59) has completed its acquisition of 80% of the shares in Eastern Coolgardie Goldfields Pty Ltd (ECG), the company which holds the high-grade Nepean Nickel Project. Goldfellas Pty Ltd has acquired the remaining 20% with the companies to operate the project as a joint venture. A total of 8,337,966 shares were issued to the vendors as consideration for the acquisition of ECG. “Adds enormous potential to portfolio” The Nepean Nickel Project comprises 13 tenements 25 kilometres south of Coolgardie in Western Australia and contains the historic high-grade Nepean nickel sulphide mine. It was the second producing nickel mine in Australia, producing 1,108,457 tonnes of ore between 1970 and 1987 for 32,202 tonnes of nickel metal at an average recovered grade of 2.99% nickel. Auroch managing director Aidan Platel said: “The acquisition of the high-grade Nepean Nickel Project adds enormous potential to our existing portfolio of high-grade nickel sulphide projects in Western Australia. “Completion of the acquisition now means we can quickly move forward with our planned exploration programs." Location of the Nepean Nickel Project 25 kilometres south of Coolgardie, Western Australia. Aggressive drilling planned Platel said: “Given our strong cash position, the company has been able to immediately commit to an aggressive drilling campaign in early 2021, commencing with a 3,000 metres reverse circulation (RC) drill program at Nepean in January. “All work permits (POWs) have already been received for the drilling, and a drilling contractor has been locked in.” The program aims to confirm the existing remnant nickel sulphide mineralisation at the mine, to test extensions to the known shallow, very high-grade nickel sulphide mineralisation to the south of the mine, and drilling new targets further north and south along strike from the mine as defined by the aeromagnetics. Platel said: “It is a very complete program with great potential to intersect high-grade nickel sulphide mineralisation and we look forward to the new year and the drilling results from Nepean and creating value for our shareholders.” Acquisition terms The total consideration for the acquisition is $4 million, payable as follows: $2.5 million in cash of which Auroch has paid a non-refundable payment of $100,000 for exclusive due diligence on the Nepean Nickel Project; and $1.5 million in scrip being 8,337,966 Auroch shares to be issued on completion at a deemed issued price of 17.99 cents per share. Auroch will pay 80% of the cash ($2 million) and Goldfellas will pay 20% of the cash ($500,000). Auroch will pay 100% of the scrip in lieu of a ‘finder’s fee’ payment to Goldfellas in recognition of Goldfellas introducing the acquisition to the company.