Australia-based exploration company Metals of Africa (MTA) has entered into a deal with Select Exploration (SLT) to acquire a portfolio of copper-gold exploration projects in Tanzania.
Under the terms of the deal, MTA will acquire 100% of five copper-gold exploration projects in Tanzania, subject to the completion of due diligence on or before 31 January this year.
The company noted that these projects have been identified on the basis of identified mineralisation at surface in conjunction with geological and geophysical prospectivity.
SLT recently reported the identification of outcropping copper sulphide mineralisation at the Godegode project and MTA intends to follow this up with on-ground exploration after the completion of the acquisition.
MTA is already active in Tanzania and believes that the acquisition of the SLT copper-gold projects would allow the company to optimise its resources, ensuring greater up-side potential for minimal additional cost.
MTA can acquire 100% equity in SLT's copper-gold projects by issuing five million fully-paid ordinary MTA shares before 31 January this year.
The company has also entered into an option agreement to form a joint venture (JV) with SLT for a suite of exploration projects in Gabon.
MTA has the option to commit to the JV and provide SLT with five million options in MTA, as consideration for entering into the JV, up until 28 February.
The options will have a three-year life and an exercise price of 135% of the five day VWAP, prior to issue, the company said.
SLT currently has three project areas in Gabon, of which one was recently granted project and the other two are under application.