SYDNEY – Australian explorer Patriot Resources Limited said on Tuesday it has agreed to acquire the high-grade Tassa silver and gold deposit in Peru, marking a significant expansion of its battery and critical minerals portfolio.
The company will acquire 100% of Colque Holdings Pty Ltd, which holds the deposit, for an initial consideration of 20 million Patriot shares and US$500,000 in cash. Further share payments are contingent on the project achieving key resource milestones, culminating in a total potential share consideration of 176 million shares upon defining a JORC-compliant indicated resource of 50 million ounces of silver equivalent.
Drill Results Highlight Potential
Historical scout drilling at Tassa, comprising 26 diamond drill holes, has returned what Patriot called “excellent” high-grade silver intercepts, including 60 metres at 224.20 grams per tonne (g/t) silver. The southern zone of the project also demonstrated potential for gold mineralization, with one hole intersecting 16 metres at 1.50 g/t gold.
The deposit is located in Peru’s mineral-rich Ubinas district, immediately west of Buenaventura’s San Gabriel gold mine, which holds significant reserves and is slated for production start in late 2025.
Strategic Portfolio Addition
Patriot Chairman Hugh Warner said the acquisition would give the ASX-listed junior “one of the most exciting battery minerals focussed portfolios” on the exchange. The company’s existing assets include the Gorman lithium project in Canada and copper projects in Zambia.
“The high grade Tassa silver and gold deposit sits within a premier mining district,” Warner said in a statement. “We look forward to the 2026 drill programme and its potential to delineate a resource and expand the scale of this deposit.”
The acquisition remains subject to several conditions, including the completion of due diligence, a minimum A$2.5 million capital raising by Patriot, and necessary shareholder and regulatory approvals.
Deferred Payments to Previous Owner
As part of the transaction, Patriot will also assume deferred payment obligations to the underlying vendor of the project, totaling US$3 million payable over 30 months. These payments can be made in cash or shares at the recipient’s election.
A shareholder meeting will be convened shortly to approve the issuance of the initial consideration shares.