Aruma Resources Ltd. has acquired the Tillex copper-silver project from Canada-based Metals Creek Resources Corp., marking the Australian company’s expansion into one of Canada’s established copper mining districts.
Aruma executed a binding agreement with Metals Creek to acquire an 85 per cent interest of the high-grade Tillex copper project and 100 per cent of adjoining patent claims in the Timmins minerals district of Ontario, Canada.
Under the terms of the agreement, Aruma will make an initial cash payment of C$100,000 and issue C$125,000 worth of shares to Metals Creek on settlement, with additional cash payments upon reaching certain milestones.
Aruma will also grant Metals Creek a 0.5 per cent net smelter royalty for any mineral production from the project. Aruma may buy back half of the royalty value by making a payment of C$250,000.
Aruma said the acquisition is in line with its strategy of targeting copper assets with clear growth opportunities.
The acquisition also comes at a time of strong supply-demand metrics in the copper market. The project also complements Aruma’s existing Australian copper assets.
Tillex and adjoining properties all sit on patented claims, giving Aruma full title of land and underlying mineral rights, which means it will not require any landowner approvals to conduct on-ground exploration activities. A First Nations agreement is in place over the Metals Creek-held tenure.
The Tillex Project is a drill-defined, copper sulphide project with exploration potential in a mining-friendly jurisdiction.
Mineralisation is hosted within clay-altered argillites and silicified dacite with disseminated to stringer chalcopyrite.
Aruma Managing Director Grant Ferguson said: “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.
“We are excited by the scale, geometry and growth potential of the Project, and by the strong body of high-grade results delivered to date.
“We see great potential for the discovery of additional strata-bound-hosted or VMS copper mineralisation along strike and at depth beyond the Project’s drill-defined area.”
Aruma plans to immediately implement a dual strategy of exploration and resource development to expand the project’s mineralised footprint along strike and to confirm a maiden mineralised resource estimate.
Aruma has appointed a highly experienced Canadian geologist as project manager to manage on-ground activities and logistics at Tillex.
