28th Jan 2014 10:28
LONDON (Alliance News) - CEB Resources PLC Tuesday said it exercised its option agreement with Balamara Resources Ltd to earn into its Peelwood base-metal project in Australia.
In December, CEB Resources, a former sugar and ethanol sector investment company called Clean Energy Brazil, entered the agreement to earn into 49% of Peelwood by spending AUD1.2 million via three tranches paid over the next 12 months.
The company has now signed a definitive agreement and has earned into 20% of the site via an initial tranche of AUD400,000.
CEB Resources said the agreement means it will farm into the site in three stages with a total cash commitment of AUD1.2 million to earn up to 49% interest in the site.
Peelwood is an advanced zinc-copper project owned 100% by ASX-listed Balamara and holds a total combined indicated and inferred resource of 895,000 tonnes at 3.94% zinc, 0.8% copper, 0.73% lead and 16 grams per tonne of silver.
The company said an airborne electromagnetic and aeromagnetic survey will start shortly at the Peelwood site as part of a new exploration programme to identify new targets for drilling in order to increase the overall mineral resource of the project.
CEB Resources shares were up 6.5% to 0.825 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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