Terra Metals has announced an option to acquire HRM Exploration, which holds four exploration licences covering 618km², contiguous with Terra's flagship Dante copper-gold-platinum group metal project in Western Australia (WA).
This acquisition will strengthen Terra's position in the Jameson Layered Intrusion, comparable to South Africa's Bushveld Province, and enhance its Dante project.
Terra Metals, HRM and HRM's sole shareholder, Hardrock Minerals, have executed a binding term sheet providing a 12-month exclusive option for Terra to acquire 100% of HRM's issued capital.
Terra has paid a non-refundable option fee of 8.33 million fully paid ordinary shares to secure this option. The company can exercise the option at any time during this period.
Upon exercising the option, Terra will issue 7.5 million fully paid ordinary shares at settlement, with half of the shares subject to a six-month escrow and the other half to a 12-month escrow.
Additionally, up to 11.25 million deferred shares will be issued, contingent on meeting specific performance conditions related to drilling results and share trading values.
Terra Metals managing director and CEO Thomas Line said: “This is an opportunistic transaction to build upon our existing tenement holding in the West Musgrave region, which has the potential to become a globally significant critical minerals hub for Australia. We have achieved impressive milestones in our first year of exploration in the region.”
The Dante project in WA's West Musgrave region is known for its large-scale copper, gold, platinum group metal, titanium and vanadium discoveries. It is situated near BHP's Nebo-Babel deposit, one of the largest mining development projects globally.
The acquisition's settlement depends on obtaining necessary shareholder and regulatory approvals and HRM's compliance with the agreement's warranties.
If conditions are unmet by 31 January 2026, either party may terminate the agreement.
Terra will fund tenement rents, heritage protection payments and minimum expenditure requirements during the option period.
