Killi entered into a sale agreement with Black Canyon Limited (ASX: BCA) over its Balfour Project in the Pilbara of Western Australia in 2023. The Tenement Sale Agreement with Black Canyon for the sale of 100% of E46/1383 included the following staged share consideration:
the issue of $200,000 worth of BCA Shares at settlement (Consideration Shares), with the number of BCA Shares issued based on the 20-day VWAP of BCA Shares before the Execution Date; and
the issue of $300,000 worth of BCA Shares (Deferred Consideration Shares) upon estimation of a JORC compliant Mineral Resources from E46/1383 equal to, or greater than 50Mt grading at least 10% Mn (Milestone). The number of BCA Shares to be issued on achievement of the Milestone will be based on the 20-day VWAP of BCA Shares before the ASX announcement is released reporting the Milestone has been met.
All milestones have been achieved, with Killi issued the full consideration of $500,000 worth of Black Canyon shares in February 2024.
Killi initially pegged the tenement for the exploration potential to host sediment-hosted copper systems within the Proterozoic sub-basin. As part of the sale agreement Killi retains the rights to explore for and mine any copper mineralisation on E46/1383 under a Mineral Rights Deed with Black Canyon.