InterMet Resources (ASX: ITT) is close to completing its acquisition of private company Lancaster Resources with the latter's shareholders accepting the offer of 140 million InterMet shares valued at $700,000.
Lancaster holds four mineral exploration projects including an option over a large landholding around the Rox Resources' (ASX:RXL) Mt Fisher East nickel discovery in Western Australia as well as $450,000 in cash.
InterMet shareholders will soon meet to approve the acquisition.
Lancaster's four projects are targeting nickel sulphides, tungsten and gold and would appear to fit with existing InterMet projects, 8 Mile Creek and Calypso projects.
- Mt Jewell (WA) - historical drilling has intersected nickel sulphides 65km north of Kalgoorlie and there is also potential for gold mineralisation.
- Wilks Creek (VIC) - centred on a historical tungsten mine, exploration has defined strong, large tungsten anomaly that has been advanced by Lancaster to a drill ready target.
- Royal Tasman (NYSEMKT:TAS) - targeting granite related, sediment hosted gold and greisen hosted tin mineralisation. In an area of historical gold and tin mining.
- Nickel First (WA) - Lancaster has an option to acquire a 100% interest in four tenements totalling 463.99 sqkm located and adjoining the Rox Resources (ASX:RXL) Mt Fisher East project near Wiluna
In addition, Lancaster will bring $450,000 in cash into the company, bringing InterMet's total cash in bank up to $1 million.
Besides adding some interesting exploration acreage, the acquisition will also increase the company's cash reserves.
The deal is value accretive and should see the ITT share price move higher on completion.
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