Native Mineral Resources (NMR) will buy the assets for $18.9m (A$28.77m), structured over 33 months. Credit: New Africa/Shutterstock.

NMR has entered into a binding agreement with Collins St Convertible Notes (Collins St) for the acquisition of two near-mine gold assets including the Far Fanning and Black Jack Gold Projects in Queensland, Australia.

The deal includes a payment of $18.9m over 33 months. The first payment of $1m is due on 20 December 2024. The acquisition in the mineral-rich Ravenswood-Charters Towers region offers gold production potential and resource growth.

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The Far Fanning project, consisting of five mining leases covering 2.6km², was last operated in 2005 and has an updated inferred resource of 2.3 million tonnes at 1.84 grams per tonne (g/t) of gold (Au). NMR’s due diligence work programme has already yielded better gold assays, reinforcing the site’s mineralisation potential.

The Black Jack prospect includes 12 granted mineral leases and a processing plant currently in care and maintenance. The plant has a permitted capacity of 340,000 tonnes per annum and features a comprehensive processing system.

This move comes as part of Collins St’s deed of company arrangement (DOCA) proposal for Blackjack Milling and Fortified Gold, collectively referred to as the DOCA Companies. The DOCA was sanctioned by creditors on 6 November 2024.

Under the terms of the agreement, Collins St will nominate NMR as the transferee of the assets, which are part of the DOCA and an asset sale agreement with the liquidators of Ashby Mining.

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The DOCA is expected to be executed within 15 business days from the creditor meeting, with NMR set to become the owner of the DOCA Companies’ shares and the assets acquired from Ashby shortly thereafter.

NMR is exploring various fundraising avenues including a placement and an entitlement offer to fulfil its financial commitments under the agreement. The company plans to announce further details on the proposed capital raise next week, aiming to raise up to $14m before costs.

The entitlement offer terms will be disclosed by 13 November 2024, with a four-week offer period expected.

The funds raised will be allocated towards an initial $3m payment to Collins St, up to $2m in exploration costs for the acquired projects; up to $3m for NMR’s existing projects; repayment of approximately $400,000 to managing director Blake Cannavo for due diligence expenses; and a $385,000 fee to Cannavo for providing security for the projects.

Any excess funds raised beyond the expected $14m may be used to repay the remaining debt to Collins St earlier than scheduled.

The nearby Great Britain Prospect has an inferred mineral resource estimate of 1.54 million tonnes at 2.2g/t Au.