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Bligh Resources to acquire more NT ground

Thursday, February 02, 2012
THE BOURSE WHISPERER: Manganese and gold exploration company Bligh Resources has entered into an option agreement to acquire an 80 per cent interest in a 546 square kilometre exploration project adjoining the company’s 136 square kilometre Bootu Creek Two manganese exploration project in the Northern Territory.

The remaining 20 per cent of the project will be retained by Universal Splendour International, a 100 per cent-owned subsidiary of Chinese manganese exploration, mining and processing company Hunan Zhenxing Co. Ltd.

The deal will result in Bligh increasing its landholding in the area to almost 700sqkm.

 

Bootu Creek Two project location map. Source: Company announcement

The ground is located 40kms from OM Holdings’ Bootu Creek manganese mine and the Adelaide to Darwin Rail link will also run through Bligh’s expanded exploration area.

“This transaction presents an excellent opportunity for Bligh,” Bligh Resources managing director corporate Robert Benussi said in the company’s announcement to the Australian Securities Exchange.
 
“We can significantly expand our Bootu Creek manganese project by issuing Bligh scrip, and we have further de-risked our investment by securing an eight month option term to undertake the necessary technical due diligence.

“We believe this project is highly prospective for the company and we are currently developing a comprehensive exploration program for the Bootu Creek Two Region.
 
“Particularly encouraging is the fact that we will be partnering with a large and proven manganese exploration, mining and processing business that is keen to strengthen its partnership with Bligh.

“USI’s parent company Hunan Zhenxing is a proven mining and production company, and USI itself has tenement holdings in Australia covering 15,000 square kilometres which are prospective for manganese.”

Under the terms of the agreement, which is subject to due diligence, Bligh will pay USI a non-refundable option payment of $50,000 and will have eight months to complete technical and legal due diligence on the project.

If the agreement is executed, Bligh will issue USI 750,000 fully paid ordinary BGH shares in exchange for an 80 per cent interest in the project.

Bligh will fund all exploration costs up to a Feasibility Study based on a minimum annual production of 400,000 tonnes at 30 per cent manganese.

Both parties have agreed to contribute to a Bankable Feasibility Study based on their respective project holdings.
       
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