Blaze Minerals has signed a binding agreement to acquire interest in two Ugandan projects rich in critical metals.
The company will obtain a 60% stake in Gecko Minerals Uganda, which owns the Ntungamo and Mityana Projects, with an option to purchase the remaining 40% within two years.
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The acquisition positions Blaze Minerals to potentially capitalise on the increasing demand for critical metals such as beryllium, rubidium, lithium, tin and tantalite.
Under the terms of the transaction, Blaze will acquire the shares by purchasing 60% of Gecko Uganda’s total issued shares from Gecko.
The remaining 40% interest held by Gecko will be free carried until a Bankable Feasibility Study is delivered.
However, Blaze has the option to buy this stake for $750,000 (A$1.12m) at any point within 24 months from the agreement date, or it can be converted into a 2% net smelter royalty.
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By GlobalDataAs part of the consideration for this acquisition, Blaze will issue 625 million fully paid ordinary shares to Gecko.
Following the settlement and Gecko shareholders’ approval, Gecko intends to distribute 520 million of these shares to its shareholders, equating to ten Blaze shares for each Gecko share held. Gecko will retain the remaining 105 million shares.
Blaze Minerals corporate director Mathew Walker said: “This strategic acquisition is consistent with our focus on critical metals and provides near term excitement for our shareholders with all preliminary exploration work and regulatory approvals in place in support of a maiden drilling programme. Following completion of the transaction we will immediately commence discussions with potential drilling contractors.”
The Ntungamo Project spans 60km² and features extensive pegmatites, with two exceeding 140m in width and open in all directions. It has three granted exploration licences.
The Mityana Project has one granted exploration licence.
