Aruma Resources has signed a binding agreement with Metals Creek to acquire an 85% stake in the Tillex Copper-Silver Project in Ontario, Canada.
Situated in the prolific Timmins mining district, the project features high-grade copper sulphide deposits and substantial exploration potential.
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This acquisition is complemented by a separate deal to fully acquire patent claims 65382-0121 and 65382-0123, which are adjacent to the Tillex Project.
The acquisition occurs amidst favourable supply-demand conditions for copper.
Previous operators completed a total of 10,283m of diamond drilling, which consistently yielded extensive, shallow intersections of high-grade copper.
Copper sulphide mineralisation at Tillex begins approximately 30m beneath the surface and has been explored through drilling down to a depth of around 150m.
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By GlobalDataHigh-grade copper has been identified along a 450m strike length, with potential for further expansion to the north, south and deeper to the west.
The acquisition terms include an initial cash payment of C$100,000 ($72,545) and the issuance of Aruma shares valued at C$125,000 to Metals Creek.
Deferred payments are structured over three years, contingent upon certain milestones including cash payments and additional share issuances.
A production payment of C$500,000 has also been agreed upon following the achievement of positive net operating cash flow.
Ownership of the Tillex Project post-acquisition will be divided, with Aruma holding 85%, Vale Canada retaining 12% and a private consortium holding the remaining 3%.
The Tillex Project, initially discovered in 1973 by Westmin Resources, has undergone extensive drilling, revealing substantial intersections of high-grade copper. Metals Creek acquired it in 2008.
Aruma plans to pursue a dual strategy of exploration and resource development, aiming to expand the mineralised footprint and establish a maiden mineral resource estimate.
The company intends to initiate a detailed geophysical programme and a phase-one diamond drilling programme within the current quarter.
Aruma managing director Grant Ferguson said: “Aruma has continually assessed potential strategic growth opportunities, particularly in the copper space, with a specific focus on advanced assets which offer significant exploration upside in stable, operating mining-friendly jurisdictions.
“The Tillex Copper Sulphide Project aligns perfectly with our strategic criteria, and we are delighted to have secured such a complementary and value-accretive asset to our portfolio.”
In May 2024, Auruma acquired a portfolio of copper and uranium exploration assets in South Australia and Queensland.
