Woomera Mining's Strategic Move: Bronze Fox Project Agreement and New Developments
WML (WML) Share Update October 2024 Friday 25th
Woomera Mining Secures Key Agreement for Bronze Fox Project in Mongolia
Woomera Mining Limited (ASX: WML) has made significant strides in its exploration and development activities, highlighted by a crucial agreement with Kincora Copper for the Bronze Fox Project in Mongolia.
Instant Summary:
- Agreement with Kincora Copper for Bronze Fox Project in Mongolia.
- Woomera can earn up to 100% of the project by spending US$4 million.
- Drilling commenced at Bronze Fox in October.
- Successful application for $300,000 in tax credits under JMEI scheme.
- Share placement and plan launched to raise approximately $2 million.
- Ralf Kriege appointed as Managing Director.
Bronze Fox Project Agreement
Woomera Mining Limited has entered into a binding term sheet and earn-in agreement with Kincora Copper, granting Woomera the right to earn up to 100% of the Bronze Fox Copper-Gold Project located in the Southern Gobi copper-gold belt of Mongolia. The project hosts an Inferred Mineral Resource of 194Mt at 0.26% copper equivalent, with significant exploration potential.
Woomera can earn an 80% interest in the project by spending US$4 million, with an option to acquire 100%. The company has commenced a diamond drilling program to explore higher-grade zones and increase resource tonnage.
Financial and Corporate Developments
In addition to the Bronze Fox agreement, Woomera successfully applied for up to $300,000 in tax credits under the Federal Government's Junior Minerals Exploration Incentive (JMEI) scheme. The company also launched a share placement and share purchase plan to raise approximately $2 million, with the first tranche and the SPP already completed.
Ralf Kriege has been appointed as Managing Director, bringing extensive experience to guide Woomera's strategic initiatives.
Other Projects and Future Plans
Woomera continues to advance its other projects, including the Mt Cattlin and Mt Short projects in Western Australia, focusing on lithium and base metals exploration. The company is also preparing for drilling activities at the Mt Venn Project, contingent on obtaining necessary permits.
The agreement with Kincora Copper positions Woomera to significantly expand its resource base and exploration potential in a world-class copper-gold belt. The successful capital raising efforts and tax incentives further strengthen Woomera's financial position, enabling continued exploration and development activities.
Investor Reaction:
Analysts are likely to view the agreement with Kincora Copper as a positive development, given the potential of the Bronze Fox Project. The strategic appointment of Ralf Kriege as Managing Director is expected to bolster investor confidence in Woomera's leadership and direction.
Conclusion:
Woomera Mining's recent activities and strategic agreements highlight its commitment to expanding its resource portfolio and enhancing shareholder value. Investors should keep an eye on the progress of the Bronze Fox Project and other exploration initiatives.