Accelerate Resources (ASX:AX8) expands Balagundi and divests Kanowna East in Maritana Deal

Accelerate Resources has executed a binding deal with Maritana Minerals to acquire MRT’s entire Balagundi tenure and divest AX8 non-core Kanowna East ground.

The transaction increases AX8’s Balagundi landholding to ~62km², with acquired tenure including a potential ~600m strike extension of the Delta Trend, while AX8 will receive $200,000 in MRT shares with zero cash outlay.

Highlights

• AX8 has executed a binding deal with Maritana Minerals to acquire MRT’s entire Balagundi tenure and divest AX8 non-core Kanowna East ground.
• AX8’s Balagundi landholding doubled to ~62km², with the release also stating the transaction increases landholding by approximately 78%.
• Acquired tenure includes a potential ~600m strike extension of the Delta Trend.
• AX8 will receive $200,000 in MRT shares, calculated based on Maritana’s 5-day VWAP prior to execution of the agreements, subject to a minimum issue of 133,333 MRT shares.
• A 5-year right of first refusal is included in the agreement for toll treatment services for future AX8 ore from Balagundi at the Black Swan processing facility, subject to terms disclosed in the release.

The transaction includes tenure interpreted to capture a potential ~600m strike extension of the Delta Trend, which was identified by Accelerate through recent aircore drilling and is described in the release as emerging as one of the company’s priority target corridors at Balagundi.

The transaction also increases AX8’s Balagundi landholding by approximately 78%, with the company stating the newly acquired tenure will be incorporated into ongoing exploration planning at Balagundi.

Maritana’s Black Swan processing facility, which is currently being refurbished and located less than 50km from Balagundi, is also referenced in relation to a 5-year right of first refusal to provide toll treatment services for future AX8 ore from Balagundi, subject to economic mineralisation being defined and acceptable commercial terms being agreed.

The transaction structure also includes the divestment of AX8’s Kanowna East tenure package to Maritana, with cash consideration payable under each agreement of $60,000, allowing the cash components to be offset between the parties.

Both Accelerate and Maritana will also grant each other a 1% Net Smelter Royalty over each groups divested tenements.

Accelerate Chief Executive Officer Luke Meter said

“This is a strong move that instantly scales Balagundi by approximately 80% and secures a further 600 metres strike of the high priority Delta Trend, in a significant consolidation of this high-grade gold camp. Additionally, the transaction adds $200,000 of MRT shares onto our balance sheet, while the inclusion of a Land Use Agreement removes land access risk and the Black Swan mill toll-treatment facility provides clear line of sight to low-capex production pathways. We’re now better positioned to unlock value in the heart of the Kalgoorlie goldfields with our ongoing exploration.”

Completion of the transaction remains subject to customary conditions precedent, including any required Maritana shareholder approval, regulatory approvals, third-party consents and assignment documentation.

Following completion, Accelerate intends to incorporate the newly acquired tenure into ongoing exploration planning at Balagundi, including assessment of extensions to the Delta Trend and other priority structural targets across the expanded project area.

The company will also continue advancing current drilling and evaluation activities at Balagundi, with assay results from recent programs being finalised.

The release states the parties intend to progress completion promptly, with AX8 to update the market as material conditions are satisfied.