SYDNEY, AUSTRALIA: Trigg Minerals Limited (ASX: TMG), a mineral exploration company with a sulphate of potash (SOP) project in Western Australia, has announced that it has signed a binding agreement to acquire 100% of Rush Resources Limited, a mineral explorer with an advanced gold and base metal project in Queensland.
The acquisition will give Trigg access to the Drummond Project, which is located in the Drummond Basin, a prolific gold region that hosts several world-class gold deposits. The project has historical drilling results that indicate high-grade gold mineralisation, as well as potential for base metals such as copper, lead and zinc.
Trigg will issue 56.6 million shares to the shareholders of Rush in two tranches, subject to certain conditions and milestones. The first tranche of 38.3 million shares will be issued upon completion of the deal, while the second tranche of 18.3 million shares will be issued upon achieving a minimum drilling result of 20 metres at 1 gram per tonne of gold (or equivalent) within two years.
The deal is subject to Trigg shareholder approval, which will be sought at a general meeting on 20 October 2023. Trigg will also raise $2 million through a placement of 40 million shares at $0.05 per share to fund the initial exploration work at the Drummond Project and to provide working capital.
Trigg’s Non-Executive Chairman, Mike Ralston, said that the acquisition was a strategic move to diversify the company’s portfolio and to leverage the global energy transition. He said that the Drummond Project had significant value and upside potential, and that Trigg would continue to develop its Lake Throssell SOP project in parallel. He added that Trigg was close to delivering a potentially game-changing technology solution for the SOP industry in Western Australia.