Belararox has signed a binding agreement to acquire 100% shares of Fomo Ventures No 1 (Fomo), which owns the Toro-Malambo-Tambo Project (TMT Project) in Argentina.
Earlier this year, the Australian mineral exploration company signed a non-binding agreement to purchase the TMT Project.
Under the terms of the binding agreement, the company will purchase all the shares of Fomo from Octo Opportunities and BL Family Nominees.
It will also sign royalty deeds with the Fomo shareholders, for a 1% net smelter royalty (NSR), along with a services agreement with Condor Prospecting Australia (Condor).
Under the services agreement, Belararox will transfer its shares worth up to $1m to Condor in exchange for services and direct exploration expenditure on the tenements.
The shares issued will be voluntarily escrowed until 30 June 2024.
Belararox managing director Arvind Misra said: “Our due diligence has identified historic core drill results undertaken at the southern end of the TMT project.
“These finds add further credence to our belief that this asset, located in a region known to be mineral-rich, is highly prospective for zinc, an in-demand clean energy metal used in processes to reduce carbon emissions.”
Belararox believes that the TMT Project has potential for base metals and cu-au porphyry in San Juan province in Argentina.
The project has seen historical exploration activities by Sonoma Resource Development Argentina during 1995-99 and Votorantim Metais Argentina during 2012-14.
The exploration activities focused on the Toro target, located in the south of the TMT project, which also includes the Malambo target and the Tambo target.
Belararox examined records of historical surface samples over the Toro target’s Central and Southern Zones, through its due diligence process.
The rock chip sample data produced significant surface sampling assay results, with 13.3% zinc, 12.1% lead, 2.56 grams per tonne of gold, 1.9% copper and 1,980ppm silver.
Misra added: “We will continue to progress our Toro-Mambo-Tambo acquisition process over the coming weeks with the aim of closing the transaction soon after obtaining shareholder approval.
“Once this work is done, the on-the-ground team we have assembled with Condor to undertake exploration activities in Argentina will get to work.
“For now, we look forward to further updating the market on the process and exploration activities over the coming weeks.”
