SYDNEY, AUSTRALIA: Metal Hawk Limited (ASX: MHK), a gold and base metals explorer, has announced that it has entered into a binding agreement for an option to purchase the western Yarmany project tenements from Black Mountain Gold Limited, a wholly owned subsidiary of Horizon Minerals Limited (ASX: HRZ).

The project is located 40km north-west of Coolgardie in Western Australia and covers an area of 282km2.

The Yarmany project is a belt-scale project that reinforces Metal Hawk’s exposure to key future facing commodities, complementing the Company’s existing Berehaven Nickel and Fraser South Nickel/REE projects in WA’s Eastern Goldfields.

The project is considered prospective for both komatiite-hosted nickel sulphides and pegmatite-hosted lithium mineralisation, with several target areas identified along a 50km strike extensive zone of the Ida Fault. The project also hosts numerous pegmatite outcrops throughout largely unexplored tenure.

The project has seen limited historical drilling, which confirms a favourable geological setting for both nickel and lithium mineralisation. Previous drilling by Horizon intersected up to 0.8% nickel and 0.1% copper in komatiites at the Yarmany Hill prospect. Previous drilling by Lithium Australia (ASX: LIT) intersected up to 1.5% lithium oxide in pegmatites at the Bald Hill South prospect.

Under the terms of the agreement, Metal Hawk will pay Horizon $50,000 cash and issue 500,000 Metal Hawk shares to secure an exclusive six-month option to acquire 100% of the project tenements. During the option period, Metal Hawk will undertake exploration activities on the project, including geophysical surveys and drilling. If Metal Hawk elects to exercise the option, it will pay Horizon a further $100,000 cash and issue 1 million Metal Hawk shares. Horizon will also retain a 2% net smelter return royalty on any future production from the project.

Metal Hawk’s Managing Director, Will Belbin, said: “We are very pleased to secure this option to acquire the Yarmany project, which adds another high-quality asset to our portfolio of nickel and lithium projects in WA’s Eastern Goldfields. The project has excellent exploration potential for both commodities, with several targets already defined along a major regional structure. We look forward to commencing exploration activities on the project as soon as possible and unlocking its value for our shareholders.”

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