Metals Australia has signed an agreement to acquire an 80% stake in private company Payne Gully Gold (PGG), which owns highly prospective battery and precious metals projects in Australia.

Payne Gully owns the Warrambie nickel-copper-cobalt project and Murchison Domain gold project in Western Australia (WA), as well as the Tennant Creek copper-gold project in the Northern Territory (NT).

According to the agreed terms, Metals Australia will issue 40 million shares of its common stock at $0.07 apiece.

It will also issue a further 84 million of its shares at the same price and make a $300,000 cash payment to the PGG vendors. This is subject to shareholder approval.

Metals Australia chairman Mike Scivolo said: “The company has taken advantage of an outstanding opportunity to acquire a suite of highly prospective battery metals and gold projects with multiple drill targets near major deposits in tier one jurisdictions.

“These new projects give Metals Australia the opportunity to build on its exploration success over the past few months.

“The Payne Gully acquisition is in line with the company’s focus on projects in highly-prospective mineralised terranes such as in the Yilgarn and Pilbara regions of Western Australia, and the Tennant Creek region of the Northern Territory.”

Metals Australia anticipates the acquisition to enhance its portfolio of battery metals and gold projects in WA and NT.

Located in the Pilbara region between Sabre Resources’ Sherlock Bay nickel sulphide project and the Andover nickel sulphide discovery, the Warrambie project is considered highly prospective for mafic intrusive nickel-copper-cobalt sulphide mineralisation.

The Murchison Domain project comprises four large prospects. The tenements are said to be highly prospective for major gold deposits as well as Ni-Cu-Co-PGE and lithium mineralisation.

The Tennant Creek project includes three tenements near the Warrego high-grade copper-gold deposit and one near Tennant Minerals’ Bluebird copper-gold discovery.

This project is called highly prospective for iron oxide copper-gold (IOCG) discoveries of the Tennant Creek style.