ASX-listed mining company Battery Minerals has signed an agreement to buy 100% of Deep Ore Discovery, which owns the Spur gold project in the Lachlan Fold Belt in Australia.

Located 14km from Newcrest Mining’s Cadia Valley Operations, the Spur project (EL5238) includes the wider Cargo gold-copper porphyry field where historical exploration took place.

Battery Minerals will explore outside of the Cargo intrusive complex, where historical drilling showed shallow epithermal-style gold mineralisation at the Spur and Spur south prospects.

Initially, the exploration programme will include diamond drill testing of extension to target down-dip and down plunge extensions at Spur and Spur south prospects. Existing intercepts at the prospects show an average of 86m at 1.56 grams per tonne of gold (Au).

The company is set to start drilling work in December 2023, upon completion of the deal, which is subject to various conditions. These conditions include regulatory and shareholder clearances, along with financial and legal due diligence.  

As a consideration, Battery Minerals will issue 15 million fully paid shares, each priced at A$0.04 ($0.025), which will be subject to a voluntary one-year escrow period from the closing date.

Along with shares, ten million options exercisable at A$0.08, with an expiry period of five years, will be issued as part of tranche one.

Under tranche two, 30 million options exercisable at A$0.16, with a five-year expiry term, will be issued. A 2.5% net smelter royalty will also be granted to the seller.

Battery Minerals managing director Peter Duerden said: “We are delighted to announce the acquisition of the highly prospective Spur project. This deal represents a transformative opportunity for the company, providing high-quality, near-term drill targets, down-dip from open wide historic gold intercepts in the East Lachlan.”

The company also plans a name change to Waratah Minerals as it develops a portfolio of gold-copper assets.