Australian iron ore developer Apollo Minerals has secured shareholder approval to form a strategic alliance with High Power Exploration (HPX), to explore iron oxide-copper-gold (IOCG) deposits in the Northern Gawler Craton in South Australia.
Under the terms of the deal, HPX will make an initial equity investment of $1m at $0.02 per share, to acquire a 10% stake in Apollo.
HPX can increase its stake to 20% by making a further investment of about $1.4m before 30 June, by subscribing for shares priced at $0.024 each.
Further, the deal includes two tranche equity investments of about $3.4m, which allows HPX to earn an 80% interest in the Commonwealth Hill joint venture (JV).
Up to $1.25m of the placement amount will be applied towards the farm in expenditure, following which, a JV will be established between the parties.
The company has completed the preparation and planning for the first IP geophysical survey over the Bundi and Wirrida IOCG targets and survey works are expected to commence, with a decision to drill within the first half of this year.
HPX will apply its in-house geophysical tools and expertise at the Bundi prospect, which is said to have a large and highly prospective IOCG type footprint.
The geophysical technology of HPX can penetrate to great depths and has been successfully deployed in Australia, Africa and South America.
With a capability to evaluate the large geological features that are present, the technology is suited to the geological environment and surface conditions found at Commonwealth Hill.
Apollo believes that the project area in the northern Gawler Craton has strong a potential to host a tier one base and precious metals deposit.
Image: Apollo's Bundi prospect is in a new IOCG Frontier in South Australia. Photo: courtesy of Apollo Minerals Ltd.