LONDON (Alliance News) - Rockfire Resources PLC said Monday it has entered into an option to acquire the Copper Dome porphyry copper project in central Queensland, Australia.
Rockfire said, in the event the option is exercised, Copper Dome could potentially add "material value" to Rockfire's porphyry copper portfolio.
The miner has paid Symbolic Resources Pty Ltd, an Australian private mineral exploration company, the option fee of AUD20,000 to keep the option open for six months from November 23.
Rockfire may notify Symbolic at any time during the period it wants to exercise the option, it will then have to pay Symbolic a further AUD30,000 in cash and issue Symbolic AUD50,000 in shares of Rockfire.
Rockfire will own 100% of Copper Dome if it exercises the option.
Copper Dome is a large-scale mineralised system 50 kilometres from Copperhead. The surface expression of the copper mineralisation is over 2 kilometres long and 1 kilometre wide and the prospect, according to Rockfire, is "vastly under-explored".
Chief Executive Officer David Price said: "The acquisition of Copper Dome would be a tremendous fit with Rockfire's existing portfolio of porphyry copper prospects and I view this as a potential strategic platform for future growth. Copper Dome provides opportunity to secure a project similar in many ways to Copperhead, with intervals of high-grade copper within a much broader envelope of copper mineralisation."
Shares in Rockfire closed down 4.4% at 1.10 pence each.
Rockfire Resources (ROCK)