Outright Acquisition of EL26196
Perth, Mar 7, 2012 AEST (ABN Newswire) - Rum Jungle Resources Limited (
ASX:RUM) is pleased to announce it has reached agreement with Spinifex Uranium Pty Ltd for the outright acquisition of EL 26196, approximately 30 kilometres west of Barrow Creek 1 (EL 25184) and extending further to within less than 20 kilometres of the Central Australia Railway. The EL is granted and is surrounded by five EL Applications made by Rum Jungle Resources Ltd over the last six months ELs 28978, 28979, 28980, 29266 and 29287 (Figure 1).
Figure 1 highlights the purple shaded area extending through the ELs which represents untested possibly phosphogenic siltstone in the Arthur Creek Formation that hosts the Barrow Creek 1 and Ammaroo 1phosphate deposits. Technical staff of Rum Jungle Resources Ltd interpreted this trend from all scientific information available. The area is totally sand covered so some exploration risk still exists but warrants thorough investigation.
Terms of the purchase are as follows:
1. the acquisition and transfer of EL 26196 from Spinifex Uranium Pty Ltd is to be satisfied by the issue of up to 2,000,000 shares in the capital of Rum Jungle Resources Ltd (Subject to clause 4).
2. if a viable phosphate deposit is indicated by drilling during the next 24 months Rum Jungle Resources Ltd will issue an additional 1,500,000 shares to Spinifex Uranium Pty Ltd.
3. Spinifex Uranium Pty Ltd will hold a $0.50 per tonne royalty on any direct shipping phosphate rock or beneficiated phosphate rock suitable for feeding a phosphoric acid or DAP plant.
4. the agreement is subject to a 7 day due diligence period to be carried out by Rum Jungle Resources Ltd which is likely to see the number of shares referred to in clause 1, reduced to take account of any outstanding monies owed with respect to EL 26196.
Our company believes the transaction to be extremely important given the prospectivity of the Arthur Creek Formation in this unexplored part of the Georgina Basin. The discovery of another major deposit closer to infrastructure would very obviously add to the whole economic scale of the project.
The exploration budget this year for the Ammaroo Phosphate Project is now in the order of $4,000,000 and this allows for drill coverage of the northwest exploration ground described herein as well as lifting the resource status of both Barrow Creek 1 and Ammaroo 1 Phosphate Deposits.
Commencing this week, geologists and field assistants will have returned to the new 22 man base camp at Barrow Creek 1 preparing for an intensive drilling program that will run for months.
To view the complete Rum Jungle announcement including Figure 1, please refer to the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-RUM-370486.pdf
About Verdant Minerals Ltd
Verdant Minerals Ltd's (ASX:VRM) strategic intent is to create shareholder value through the discovery, development and operation of fertiliser and industrial mineral projects, located in close proximity to existing transport infrastructure, with a primary focus on the Northern Territory of Australia.
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