SYDNEY, AUSTRALIA: Minerals 260 Limited has executed an agreement to acquire the Nardoo Lithium-Rare Earths (REE) Project, located approximately 230km east of Carnarvon and 850km north of Perth in Western Australia, from eMetals Limited (ASX:EMT).

Due diligence has been completed and the only condition to completion is the execution of a deed of assignment in respect of an existing royalty on one of the tenements.

The Nardoo Project comprises seven granted EL’s covering a total area of 789km2 of the highly prospective, but under-explored Gascoyne Province.

The Gascoyne Province and Nardoo Project area have been explored historically for gold, base metals, tungsten and uranium; however, recent exploration by neighbouring tenement holders has highlighted the region’s prospectivity for both hard rock hosted lithium (spodumene) and REE deposits.

Minerals 260 will undertake a detailed review of previous exploration data prior to planning geochemical and geophysical programs designed to quickly define targets for drill testing.

Minerals 260 strong cash position (~$21M at 31st December 2022), ensures it is able to quickly progress exploration activity at the Nardoo Project, while also maintaining momentum at its other key asset, the Moora/Koojan Project in the Julimar Region of southwest Western Australia, where it is has just announced a follow up drill program targeting extensions of the Mynt copper-gold prospect where recent drilling results have confirmed the potential for significant copper-gold mineralization.

Commenting on the acquisition, Minerals 260 Managing Director David Richards said: “The acquisition of a large area in an emerging, highly prospective region is an exciting opportunity for Minerals 260 and our shareholders.

The deal is consistent with the Company’s philosophy of targeting under-explored areas, previously considered less fashionable, with the potential to discover truly world-class mineral deposits.

“In this regard, Nardoo is a complementary addition to our flagship Moora Project, representing a high-quality geological opportunity in an under-explored region with the potential for large-scale discoveries in a basket of commodities that fits extremely well with our strategic focus and expertise. We look forward to rapidly advancing the Project and getting the drill rigs going as soon as possible.”

Following are the key terms of the acquisition:

• The agreement is between Minerals 260 Ltd through its wholly owned subsidiary ERL (Aust) Pty Ltd and eMetals Limited and its wholly owned subsidiaries RWG Minerals Pty Ltd and Iron Clad Prospecting Pty Ltd which are the parties that hold the tenements comprising the Nardoo Project.
• Minerals 260 to issue eMetals Limited 7,000,000 shares (“Consideration Shares”) on completion at a deemed issue price of $0.30 per share.
• The Consideration Shares will be subject to a voluntary escrow period of six months from completion of the acquisition, on customary terms.
• The completion of the acquisition is conditional on the execution of a Deed of Assignment relating to an underlying Royalty on one of the tenements.