Commodities, Finance, News, Nickel

IGO buys Symons Hill in the Fraser Range

IGO

IGO has been given full reign to explore Matsa Resources’ Fraser Range landholding in Western Australia after buying into the junior’s portfolio.

Under its subsidiary IGO Newsearch, the major miner has acquired a 70 per cent in the Symons Hill nickel project and Matsa’s other Fraser Range tenements. Symons Hill is located 6km from IGO’s Nova nickel-copper operation.

IGO will pay $600,000 in cash as part of the agreement and then free carry Matsa for all exploration up to the completion of feasibility studies or decision to mine, whichever occurs earlier. Matsa will retain a 30 per cent interest in the projects up until this point.

“This transaction enables IGO to have unfettered access to any part of Matsa’s Fraser Range landholding and explore the tenements to the fullest extent without specific time or cost demands,” Matsa’s executive chair Paul Poli said.

“It provides Matsa with a cash boost as well as receiving the expert knowledge and exploration experience of the IGO team, which is second to none.”

The disposal of the non-core Fraser Range tenements will allow Matsa to focus on its Lake Carey project while retaining an interest in the potential upside at no cost.

Matsa currently holds a ground position of approximately 503km2 at Lake Carey in the Laverton belt of WA, which is proximate to AngloGold Ashanti’s Sunrise Dam operation.

The company is in the process of selling its Red October and Devon tenement package to Linden Gold Alliance for $20 million in cash and shares. This would revise its Lake Carey landholding to 385km2.

IGO recently completed its acquisition of Western Areas, which it said is a “logical consolidation” of key nickel assets in WA.

The major miner now owns the Nova, Forrestania and Cosmos operations, each of which boasts its own unique nickel credentials.

Nova produced 20,166 tonnes of nickel in the three months to March 31, while Forrestania is regarded as one of the country’s highest grade nickel mines.

The Cosmos operation includes the emerging Odysseus mine, which is on track to deliver first concentrate in the December quarter of 2022.

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