Critical Resources (ASX:CRR) has entered binding agreements to acquire the Cap Burn Project and four prospecting permit applications on New Zealand’s South Island. Critical Resources is a mineral explorer and developer focused on its asset portfolio in Australia and Canada. The company’s project portfolio is considered prospective for primarily lithium and copper.
Under the Cap Burn acquisition agreement with Western Woods NZ, Western Mathew NZ, and Mineral Rangahau, Critical Resources will grant the vendors a 1.5% net smelter return royalty on future production. The Koura permits acquisition involves an initial payment of $60,000 cash to Koura Resources, followed by deferred milestone payments totalling $450,000 in cash or 75 million shares, contingent on exploration outcomes and permit conversions. Completion of these transactions is subject to due diligence and the establishment of a royalty deed for the Cap Burn acquisition.
Upon completion of the Koura transaction, a joint venture will be formed, giving Critical Resources a 90% stake in the permits, while Koura retains the remaining 10%. Koura will be free carried until Critical Resources makes a final investment decision regarding mine development, following the completion of all necessary studies and permits. CEO Tim Wither stated that this acquisition complements the company’s existing gold and antimony portfolio, adding advanced drill-ready targets.
Wither added, “The company looks forward to progressing the New Zealand projects alongside our New South Wales Amoco and Mayview projects.” To expedite exploration across the Critical Resources New Zealand portfolio, the company has partnered with a New Zealand-based geological group with connections to Santana Minerals’ Rise and Shine deposit discovery. These projects provide an underexplored land position of 1,463km2 in the Otago region of New Zealand.
