St George has entered into a binding agreement with BHP Billiton Nickel West Pty Ltd to acquire the whole of Nickel West's 75% interest in the Mt Alexander Project in Western Australia.
The project already hosts high-grade nickel-copper sulphides, such as 4 metres at 4.9% nickel, 1.7% copper and 3.9g/t total PGEs from 91.4 metres.
St George is already planning a drilling program for 2016.
Consideration for the acquisition of the 75% interest is $300,000, with the transaction scheduled to be completed on 28th January 2016.
John Prineas, executive chairman, commented:
"In October, we acquired 100% of the Hawaii and Mt Alexander North Projects from BHP Billiton.
"St George now has an unprecedented opportunity to unlock the potential of this Project and to realise its tremendous value.
"Mt Alexander is a compelling addition to our portfolio of projects and very complementary to our 100% owned East Laverton Project where we are continuing to explore priority nickel sulphide and gold targets.
"This milestone acquisition has re‐enforced St George's credentials as a high quality explorer with an enviable portfolio of projects that provide multiple opportunities for a significant discovery."
- Nickel West has off‐take rights to St George's share of any nickel produced from the Project;
- Nickel West may charge a base royalty of 1% of the proceeds from St George's share of any mineral production at the Project; and
- Nickel West may charge an additional royalty of 1% of the proceeds from St George's share of any nickel produced from the Project provided that the additional royalty is only payable if a minimum measured and indicated JORC resource of at least 25,000 tonnes of contained nickel is defined at the Project and payments of the additional royalty start 12 months after commercial production from the Project.
Today's acquisition is an outstanding low-risk exploration project in a world class nickel region of Western Australia, and adds an additional core asset in St George's burgeoning project portfolio.
St George is already planning drilling to follow-up the historical intersection of 4 metres at 4.9% nickel and 1.7% copper.
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