IGO has agreed to acquire Creasy Group’s Silver Knight nickel-copper-cobalt sulphide deposit in Western Australia for $45 million.
The company will also form a joint venture (JV) with Creasy Group to explore tenements surrounding Silver Knight under the binding agreement.
Silver Knight is located in the Fraser Range and was discovered by Creasy Group in 2015. It is located 35 kilometres north-east of IGO’s Nova nickel-copper-cobalt operation.
The Nova deposit was discovered by Sirius Resources in 2012 before IGO acquired the company for $1.8 billion
Creasy Group was a major shareholder in Sirius when it discovered the Nova deposit, a site credited for kicking off wide-spread nickel exploration in the Fraser Range.
Under the JV, IGO will hold a 65 per cent interest and Creasy Group will own the remaining 35 per cent
According to IGO managing director and chief executive officer Peter Bradford, the company will aim to complete a pre-mining activity at Silver Knight by 2023.
“We are pleased to have concluded this agreement with Creasy Group to acquire Silver Knight and the additional joint venture tenure,” he said.
“The Silver Knight discovery not only validated the potential for the Fraser Range to host multiple commercial nickel- copper sulphide deposits but also provides a secondary source of feed for the Nova processing plant.
“Our aim is to fast track the detailed assessment and permitting of Silver Knight in order to commence first pre-mining activity on the site by 2023.”
IGO expects full documentation on the transaction to be released by September 30, 2021, with it to be finalised in the following five business days.
An infill drilling program will take place at Silver Knight after the transaction is finalised.
IGO stated it would also progress regulatory approvals and a native title mining agreement for the project.
According to IGO, the remaining exploration tenements under the JV are also prospective for more Nova-style deposits.