SKY Metals (ASX: SKY) has entered into an option agreement with Burrendong Minerals Ltd (ASX: BML) to divest its Galwadgere project in New South Wales, Australia.
BML are a pre-IPO exploration company exploring a portfolio of projects with mineral resources complimentary and adjacent to the Galwadgere Project near Wellington, NSW.
“The integration of the Galwadgere Project into the Burrendong Minerals portfolio allows SKY to see value for this non-core project while continuing to develop the Tallebung and Narriah Projects over the coming months,” commented SKY Metals CEO, Oliver Davies.
“Galwadgere will be a terrific compliment to BML’s portfolio of mineral resources in NSW and streamline SKY’s portfolio to focus on core assets.”
The two-stage agreement details that Burrendong will earn the option to purchase Galwadgere after spending A$250,000 on exploration in the area within 18 months of executing the purchase agreement. Once stage one is complete, Burrendong will then be able to purchase Galwadgere outright by either a cash or share payment of A$600,000.
Burrendong has a portfolio of projects centered on the area around the Galwadgere project, including the Commonwealth Deposit. Burrendong aims to list on the Australian Securities Exchange (ASX), with an IPO planned in the coming months.
Galwadgere is about 15km southeast of Wellington in central NSW and mineralization is open along strike and at depth. SKY announced a maiden inferred resource of 3.6Mt at 0.82% Cu and 0.27g/t Au back in 2021.
For further information, please visit: www.skymetals.com.au
