Terrain Minerals Limited (ASX: TMX) (Terrain) is pleased to announce two tenement acquisitions associated with the Company's Smokebush Project, which is located approximately 350 kilometres north of Perth, Western Australia.
First Acquisition:
Terrain has successfully acquired the outstanding 20% of the Smokebush joint venture (JV) tenements (being the prospecting and exploration licenses P59/2125, P59/2126, P59/2127, P59/2128 & E59/2234) and, as such now owns 100% of the highly prospective Smokebush Project (refer to diagram 1).
The purchase price and terms of this first acquisition are as follows:
Terrain to issue the vendor ten million (10,000,000) fully paid ordinary shares ASX:TMX (equating to approximately $70,000 at $0.007 per share) to be issued under the Company's existing placement capacity under Listing Rule 7.1.
1% Net Smelter Royalty (NSR; standard royalty definitions) on the first 100,000 ounces of gold or to the equivalent value on other minerals.
New agreement cancels out the existing JV and all outstanding liabilities:
Future Payments of up to $500,000 in cash or shares based on milestone - Cancelled.
Vendor's previous 20% free carry interest until completion of feasibility study - Cancelled.
Vendor's previous 20% free carried interest will convert to a 1% NSR - Cancelled and replaced
Refer to ASX release for the original farm in agreement: 2 December 2019 - Farm-in Agreement for the Smokebush
Gold Project at Mt Mulgine, 65km West of Paynes Find WA.
Second Acquisition:
Terrain also acquires 100% interest of a small exploration tenement E59/2700 which is surrounded by Terrain's existing Smokebush tenements. The corner of E59/2700 divided the structure that runs between the Rabbit Warren target and the Larin's Lane structure, which Terrain is planning to explore further as part of its 2023 air core drilling campaign (refer to diagrams 1 & 2). E27/2700 was acquired for a total of $20,000 made up of $10,000 cash and $10,000 of fully paid ordinary shares in Terrain (equating to 1,428,571 shares at $0.007 per share) to be issued under the Company's existing placement capacity under Listing Rule 7.1. The board is excited to have consolidated ownership over the total package and more importantly cancel the JV agreement, replacing it with a more beneficial set of terms for all shareholders (refer to page 2 for an overview of historic gold drilling results).
Location & Access
The Smokebush Project is located approximately 85 kilometres east northeast of the Perenjori township and 65 kilometres west of Paynes Find within the Yalgoo Mineral Field. The tenements can be accessed via the unsealed Perenjori - Warriedar Road, and thence via extensive historical exploration grid lines, station tracks and fences lines. The now 100% owned project consist of Prospecting Licenses (P59/2125, 2126, 2127, 2128 & 2774) and Exploration Licence E59/2234, 2435, 2482 & 2700 (refer to diagram 1). The geology of the area consists predominantly of a folded, regionally metamorphosed Archaean greenstone sequence at the southern end of the Yalgoo Singleton Greenstone Belt that has been subjected to multi-phase granitoid intrusion. Located adjacent to a large tungsten resource at Mt Mulgine (Tungsten Mining NL) and a number of recently developed gold open pit mines (Minjar Gold Pty Ltd).
Contact:
Justin Virgin
Executive Director
Email: terrain@terrainminerals.com.au
T: +61 8 9381 5558
Competent Person Statement:
The information in this report that relates to the exploration activities are based on information compiled by Mr. S Nicholls, who is a Member of the Australian Institute of Geoscientists and full time employee of Apex Geoscience Australia Pty Ltd. Mr Nicholls has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr. Nicholls consents to the inclusion in the report of the matters based on his information in the form and context in which it appears
TERRAIN MINERALS LIMITED 
