Magnum Mining & Exploration (ASX:MGU) Acquires High-Grade US Copper-Gold Projects
Acquisition Details
Magnum Mining & Exploration Limited (ASX:MGU) has entered into binding inter-conditional agreements with Monomatapa Investments Limited and EV Resources Ltd (ASX:EVR) to acquire copper-gold projects in the USA. Magnum will acquire 100% of Monomatapa Mining Services Inc, holding the Parker and Mormon Canyon Projects in Arizona and Idaho, and 100% of EV Resources Inc, holding the La Cienega Gold Project.
As consideration for the Monomatapa Transaction, Magnum will pay US$200,000 in four equal instalments over 18 months. For the EVR Transaction, Magnum will grant EVR a 2% net smelter return royalty on minerals from the La Cienega Project.
Project Highlights
The Parker Gold Project in Arizona features bonanza surface grades, with rock samples of up to 83.87 g/t gold, 359 g/t silver, and 8.37% copper. The Mormon Canyon Cu-Au-Ag Project in Idaho spans over 4km strike length with historic drilled grades up to 3.32 g/t gold and 4.72% copper, presenting drill-ready targets. The La Cienega Project in Arizona includes extensive quartz vein mineralisation, with ongoing field programmes designed to confirm historic exploration results.
Use of Funds
Magnum will use funds from the recent entitlement offer to pay the Monomatapa consideration and fund exploration on the acquired projects. The proceeds will also support exploration and development of the Buena Vista Magnetite Iron Project in Nevada, the green iron HisMelt project in Saudi Arabia, and the REE play in Brazil, along with working capital and offer expenses.
Project Updates
Renewed interest in the Buena Vista Magnetite Iron Project in Nevada has been driven by US tariff risks on mineral imports. Due diligence continues for the green iron HisMelt project in Saudi Arabia, with delays addressed, and the REE project in Brazil is on track for completion soon.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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