Kula Gold has entered a farm-in agreement with Australian Critical Minerals for its Rankin Dome project near Southern Cross in a bid to focus on its Boomerang kaolin project and exploration of other tenements.
Under stage 1 of the deal, Australian Critical Minerals can earn up to 51 per cent interest in Rankin Dome near Southern Cross in WA by spending $200,000 and completing 2000m of RC drilling at the site within 24 months.
Stage 1 is dependent on the currently privately listed Australian Critical Minerals raising $4.5 million in capital and listing on the ASX by the end of March.
Once stage 1 is completed, the two companies will form a joint venture where Kula will have the option to retain its 49 per cent interest and contribute to the development of the project.
Earlier this year Kula discovered traces of rare earths and lithium among the three tenements comprising Rankin Dome, about 130km north-west of the world-class Mt Holland lithium mine.
However, after Kula recently tabled an independently certified 93.3 million tonne maiden resource at its Boomerang prospect near Southern Cross, the company is focused on developing its kaolin portfolio in addition to exploration at its other tenements.
The company is focused on progressing commercialisation studies on the 93.3mt JORC resource Boomerang kaolin project and increasing exploration work on our other emerging projects to find and develop gold and all other base metals. We wish Australian Critical Minerals all the best with their exploration efforts and look forward to partnering with them should they be successful.
According to the company, the inferred portion of the Boomerang resource weighs in at just over 78 million tonnes whilst the indicated category accounts for 15.2 million tonnes of kaolin.
In only 12 months, Kula turned the discovery towards a JORC-compliant resource using a capital expenditure of about $1.2 million.
The company says it is looking to punch out an annual production target of up to 500 kilo tonnes via an open-pit mining operation with an estimated lifespan of more than 50 years.
In addition to its Boomerang kaolin play, Kula has a swag of other prospective projects on the go, including Westonia, Rankin Dome and Marvel Loch-Airfield Gold in addition to the Brunswick and Kurnalpi-Lake Rebecca regions. Its projects contain gold, copper, lithium, nickel, PGE, halloysite and kaolin mineralisation.
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