Kalman Project
Kalman (Syndicated Metal earning initial 60% and then up to 80%)
Property Description and Location
The Mt Isa Project covers over 850 square kilometres (km2) in the Mount Isa Eastern Succession. It comprises 17 Exploration Permits for Minerals (EPM & EPMA's) owned 100% by the Company and one EPM (EPM 13870 – Pelican- 51% owned by the Company and 49% by Syndicated Metals).
The Kalman Mo-Re-Cu-Au deposit is situated 62 km southeast of Mt Isa and lies within EPM 14232 (Trafalgar) and EPM 13870 (Pelican).
Under a new joint venture agreement completed May 2011 Syndicated Metals Limited has the right in two stages to earn up to 80% of the Kalman project and surrounding tenement portfolio. These two stages are by equity issue and exploration expenditure as follows:
Stage 1:Syndicated Metals can earn an initial 60% by issuing Cerro Resources with $2M of Syndicated Metals shares and spending $4M on exploration over 2 years;
Stage 2: Syndicated Metals can elect to earn a further 20% by issuing Cerro Resources with $1M of Syndicated Metals shares and by spending $7M on exploration over 3.5 years.
On 20 May 2011 Syndicated Metals issued the Company with 12,523,428 shares in accordance with its Stage 1 obligations and is continuing to spend $4M, which it has yet to complete. As a result Cerro owns approximately 12% of the issued capital of Syndicated Metals. (ASX:SMD)
