Cooper Metals Ltd. has agreed to a binding asset swap agreement with AIC Mines Ltd. to expand its exploration pipeline in Queensland.
The deal will see Cooper Metals acquire the Pyramid gold project, located in the prolific Drummond Basin, in exchange for its non-core Oorindi project.
The deal will give Cooper Metals a high-quality, underexplored gold asset with immediate exploration upside.
The Pyramid gold project covers 150 square kilometres and is located approximately 180 km south of Townsville. It is an advanced exploration asset with established high-grade credentials.
Historical drilling at the Gettysberg prospect has previously returned stellar intercepts, including 35 metres at 6.1 grams per tonne (g/t) gold and 15 metres at 5.65 g/t Au.
The project offers dual potential: epithermal gold mineralisation in the West Pyramid Range and Intrusion-Related Gold System (IRGS) targets in the East Pyramid Range.
In addition, the eight-kilometre Gettysberg Fault corridor remains largely undrilled, providing significant immediate upside for discovery at depth and along strike.
Under the terms of the swap, Cooper will issue 15 million shares to AIC Mines, which is set to become Cooper’s largest shareholder. A further deferred payment of AU$250,000 is tied to the definition of a 250,000 ounces gold resource within the next five years.
Cooper Metals Non-Executive Director Tim Armstrong said the acquisition aligns perfectly with the company’s copper-gold strategy.
“Pyramid represents a highly compelling transaction for Cooper shareholders, securing an advanced exploration asset located proximal to some of North Queensland’s most significant historical gold mines,” Armstrong said.
Cooper is preparing a 1,400m reverse circulation drill program at its Ardmore North prospect (Mt Isa East) for the second quarter.
To fund this expanded activity, the company has received firm commitments for a AU$979,500 placement at 10 cents per share.
“In parallel, we are preparing to recommence drilling at Mt Isa East following the wet season, with a busy field program planned across our expanded portfolio,” Armstrong said.
Cooper Metals intends to fast-track exploration at the Pyramid gold project including on-ground geochemical and geophysical surveys, targeted drill campaigns and advancement towards a maiden JORC resource.
