MLS has inked an agreement to purchase an 80% stake in Payne Gully Gold, a private company owned by Perth-based dealmaker James Del Piano that could deliver it positions in Western Australia's Pilbara and Murchison regions, and in the Northern Territory's Tennant Creek mineral field.

 

The A$9.2 million deal, which would primarily be funded by the issue of 124 million shares at a deemed price of 7c, delivers MLS three prospective projects offering potential for nickel, copper and gold.

 

MLS has about 520 million shares issued.

 

At Warrambie, between Azure Minerals' exciting 52,000 tonne Andover nickel-copper discovery and Sabre Resources' 99,000t Sherlock Bay nickel sulphide deposit, it will be looking for mafic intrusive nickel-copper-cobalt-platinum group metal mineralisation within a single 126sq.km licence.

 

Del Piano knows the area well, having been a major shareholder in Sabre for some time. It contains the 6.5km-long George Sherlock magnetic anomaly that has seen limited exploration, and almost no work since the 1990s.

 

The Murchison Domain project to the south comprises five tenements along strike from multi-million ounce gold deposits including Big Bell and Mt Gibson, and indications of partially subsumed greenstone lithologies.

 

The granted White Well and Star Well tenements have seen little work due to cover, while the Mt Gibson applications may include strike extensions from the three million ounce Mt Gibson mine.

 

They are also prospective for nickel-copper-cobalt-PGEs and lithium.

 

At Tennant Creek, Del Piano is offering four tenements along strike from the high-grade Warrego deposit or Tennant Minerals' emerging Bluebird discovery. 

 

Payne Gully's tenure is considered prospective for iron-oxide-copper-gold deposit and contains undrilled magnetic targets within the corridor linking the Warrego and Orlando/Gecko deposits.

 

MLS managing director Mike Scivolo said the chance to acquire projects with multiple drill targets near major deposits in tier one jurisdictions was too good to pass up.

 

The assets would complement its mission to develop its Manindi project in WA's south, where it has had success in expanding its known zinc-copper mineralisation, recently adding lithium, vanadium, iron and titanium potential. 

 

MLS has increased its cash position to $19.2 million this week, issuing shortfall shares under its recent raising at 7c. 

 

The Payne Gully deal requires shareholder approval.

 

MLS' stock has traded between 2c and 19.5c over the past year, rising 15% today to 5.5c, valuing it at $25 million.