Antler Gold Announces Option Agreement with Prospect Resources Limited to Sell 51% Interest of Its Highly Prospective Kesya Rare Earth Project in Zambia
Antler Gold Announces Option Agreement
with Prospect Resources Limited to Sell 51%
Interest of Its Highly Prospective Kesya Rare
Earth Project in Zambia
Halifax, Nova Scotia--(Newsfile Corp. - May 12, 2023) - Antler Gold Inc. (TSXV: ANTL) ("
Antler" or the
"Company
") is pleased to announce that Antler and its subsidiary Antler Exploration Zambia Limited
("
Antler Exploration
") have entered into an option agreement (the "
Option Agreement
") with Prospect
Resources Limited (ASX: PSC) (FSE: 5E8) ("
Prospect" or the "Partner
") pursuant to which Prospect
has an option to acquire 51% interest in Antler Exploration, which holds the Kesya Rare Earth Project
("
Project
") located in southern Zambia.
Deal Highlights:
Prospect has up to two years to acquire a 51% interest in Antler Exploration which holds
the Kesya Rare Earth Project via a total combined counterparty consideration and project
expenditure payments amounting to US$3.05 million.
Phase 1 commitment by Prospect is two cash payments of an aggregate of US$150,000
and US$350,000 in exploration expenditures as well as an issuance of US$500,000 worth
of Prospect common shares within 30 days of the completion of Phase 1.
Phase 2 option commitment by Prospect is a cash payment of US$150,000 and
US$750,000 in exploration expenditures as well as an issuance of US$500,000 worth of
Prospect common shares within 30 days of electing to proceed to Phase 2.
The final phase commitment by Prospect is a cash payment of US$150,000 as well as an
issuance of US$500,000 worth of Prospect common shares at the end of the 2 year
option period which will then earn Prospect 51% of Antler Exploration.
Project Highlights:
The Project covers a Large-Scale Exploration License Application where geological
mapping and surface sampling conducted by Antler Exploration has identified a large,
rare earth-element enriched carbonatite.
Rock chip samples assayed by Antler Exploration outline very encouraging total rare
earth element oxide (TREO) mineralisation contained within monazite and bastnaesite
with low levels of uranium and thorium.
The Kesya rock chip results provide highly anomalous surface values in rare earth
elements with the highest grab sample to date assaying 6559 ppm (0.66%) TREO.
The grab samples are enriched in neodymium (Nd) and praseodymium (Pr) oxides which
average 29% of the TREO content and makes this a very encouraging basket distribution.
Keysa's large amount of carbonatite outcrop allows for easy drill targeting offering
prospectivity to rapidly delineate a mineral resource and make a significant new rare
earth element discovery in Zambia.
Antler Exploration along with its partner Prospect are preparing for an initial 1,500m
diamond drilling program to test the subsurface expression and depth extent of the
mapped and sampled rare earth element enriched carbonatite.
Christopher Drysdale, CEO of Antler commented:
"We are extremely excited to announce this agreement with Prospect. It's a testament to our
commitment to strategic partnerships with highly credible organizations that share our vision for value
creation. Prospect has an outstanding track record, which is demonstrated by their successful
advancement of the Arcadia lithium project in Zimbabwe. This agreement represents a significant
milestone for Antler Gold as it underscores our ability to identify promising mineral prospects across
Africa and align ourselves with top-tier companies. Not only does this partnership enable us to
leverage Prospect's industry-leading expertise, but it also establishes a solid foundation for potential
future collaborations, while maintaining significant exposure to the highly promising Kesya REE
project."
Prospect's Managing Director and CEO, Sam Hosack, commented:
"The Option Agreement we have struck in relation to the highly prospective Kesya REE Project in
Zambia is another significant milestone, which extends our reach further into the battery and
electrification mineral sector in Africa, in line with our strategic objectives. Kesya has all the
ingredients of a world-class, rare earth enriched, carbonatite-hosted system, having also returned
significant values of the high-value REEs, neodymium and praseodymium, over a broad surface area
of the Project. Zambia is a leading jurisdiction to explore and develop mining operations in
subSaharan Africa, having a long-standing history in the resources sector, particularly for copper. This
includes excellent infrastructure and strong support from both the government and community, with
major companies like Barrick Gold and First Quantum Minerals already calling it home. We are
delighted to have reached this agreement with Antler, which is an established and respected
Canadian exploration and development company focussed on its flagship Erongo and Onkoshi Gold
Projects, located in central Namibia. The Kesya REE Project offers excellent potential to deliver a
significant new, highvalue rare earths discovery, with defined existing drilling targets and a well-
established operating environment. Subject to the satisfaction of all relevant conditions precedent,
this is a high-quality greenfield exploration play for Prospect."
Introduction and deal terms:
The Kesya carbonatite was first identified in 1961 by Bailey in the Kafue district in southern Zambia. An
initial mapping campaign by Antler demonstrated that it is enriched with rare earth elements and
warrants further exploration and drilling.
The Option Agreement is among Prospect, Antler and a subsidiary of Antler, Antler Exploration. Subject
to satisfaction of certain conditions precedent, Prospect will have the right to earn a 51% interest in
Antler Exploration over a two-phased earn-in arrangement over two years for total consideration of
US$3.05 million, which includes consideration payments to Antler and in-ground project expenditure.
Prospect will pay an initial non-refundable cash payment to Antler of US$50,000 on signing. Following
satisfaction of the conditions precedent under Phase 1, Prospect will pay Antler a further US$100,000 in
cash, and commit to spend US$350,000 on the Project within one year (subject to certain extensions
permitted under the Option Agreement). Prospect will also issue to Antler US$500,000 worth of
Prospect common shares at the completion of Phase 1 (the value of the common shares will be set at
the price of Prospect shares at the time of signing, based on previous 10-day VWAP).
After completion of Phase 1, Prospect can elect to proceed to Phase 2 or terminate the Option
Agreement (and in this case Prospect will hold no interest in Antler Exploration).
If Prospect proceeds to Phase 2, it is required to pay Antler a further US$150,000 in cash and issue
US$500,000 worth of Prospect common shares (the value of the common shares will be set at the price
of Prospect shares as at the time of election to proceed to Phase 2, based on previous 10-day VWAP),
and it will have the right, but not the obligation, to spend a further US$750,000 on the Project within one
year from completion of Phase 1 (subject to certain extensions permitted under the Option Agreement).
If Phase 2 is completed, Prospect will be entitled to exercise a call option to acquire 51% of the issued
and outstanding shares of Antler Exploration. To exercise the option, Prospect must make a final
payment to Antler of US$150,000 cash and issue US$500,000 worth of Prospect common shares (the
value of the common shares will be set at the price of Prospect shares as at the time of the exercise of
the call option, based on previous 10-day VWAP).
Prospect will consult with Antler in relation to the work program and budget but will ultimately determine
and manage all exploration activities in relation to the Project.
Upon completion of the acquisition, Antler Exploration will be governed by a shareholders agreement
("
Shareholders Agreement"
) among its shareholders. Prospect and Antler Exploration have agreed
on the key terms of the Shareholder Agreement, with a full form Shareholder Agreement to be entered
into in due course. Development funds for the Project are to be contributed by shareholders of Antler
Exploration on a pro-rata basis. If a party does not contribute its pro rata share, its shareholding will be
diluted via a prescribed formula. Neither party can be diluted below a 15% interest, from which point
such interest shall be free-carried through to the completion of a JORC-Code reportable or NI 43-101
compliant Feasibility Study. The shareholder can then elect to convert its free carried interest to a 2%
NSR or equivalent ("
Royalty
") and the other shareholder has a right but not the obligation to purchase
one half of the Royalty for US$5,000,000.
Proposed Exploration Programme
There has been no historic drilling done on the Kesya carbonatite and the subsurface beneath the extent
of the mapped carbonatite complex and the depth extension is yet to be tested. Antler along with
Prospect is designing a preliminary 1,500 metre diamond drilling programme at the project. (Figure.1)
The aim is to evaluate the continuity of the identified surface REE mineralisation to depth. The initial
exploration plan will be to drill twenty (20) 75m deep holes along the carbonatite as well as its contacts
with the country rock by using a heli-man portable drill rig and pending all environmental and statutory
approvals.
Project Location and Background
Figure 1.) Proposed Diamond Drill hole location plan for initial 1500m drilling.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_4cd2c3cab446ab43_002full.jpg
The Kesya REE Project, comprises a single, large-scale exploration license (LEL) application covering
1053.13 hectares and is located near the town of Kafue in southern Zambia in the Kafue Gorge. This
license is located approximately 90 km via a tarred road traveling south of the capital city of Lusaka and
has water and power infrastructure nearby. Once the LEL is granted, Antler's wholly owned Zambian
subsidiary, Antler Exploration Zambia Limited will own 95% of the Kesya REE Project. The remaining
5% of the Project has local ownership.
Figure 2.) Map of the location of the Kesya carbonatite located south of the capital city Lusaka.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_4cd2c3cab446ab43_004full.jpg
Project Geology
The Kesya Carbonatite intruded into gneisses of the Paleoproterozoic Basement Complex rock
sequences near the intersection of the mid-Zambezi-Luangwa Rift Valley and the Kesya Rift.
The Kesya Carbonatite is divided into two major rock types: Firstly, a coarse-grained carbonatite with
scattered country rock xenoliths: This carbonatite is mostly composed of coarse sövite with small
amounts of chlorite. The second rock type is a carbonatite breccia, which surrounds the main intrusion.
The major minerals identified are magnetite, quartz, apatite, Fe-rich phlogopite, monazite, thorite, Ti-
oxides, Fe-sulphides, calcite, ilmenite, and the REE-bearing mineral bastnaesite. Dating of apatite in
samples from the carbonatite indicate that it is of Neoproterozoic age (Kesya is ca. 535±16 Ma).
Figure 3.) Map of the grab sample locations with associated TREO assay values.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_4cd2c3cab446ab43_006full.jpg
The carbonatite forms a central topographic high surrounded by deeply incised valleys along its margins
where weathering processes are more intense.
Field investigations by Antler, and petrological (Scanning Electron Microscope (SEM)) studies
completed during 2021 demonstrated that the rare earth mineralisation at Kesya is hosted mainly in
monazite (a REE phosphate mineral) and bastnaesite (a REE fluoro-carbonate mineral).
Figure 4.) View of the Kesya carbonatite (Looking towards the East from the Western edge of the Kafue
Gorge)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_4cd2c3cab446ab43_008full.jpg
Rare Earth Element Mineralisation
Antler Gold has completed mapping and sampling campaigns at Kesya in 2021, which involved
reconnaissance work across the carbonatite complex and the collection of 51 rock chip grab samples
taken on the license.
Figure 6; below shows a small selection of these rock chip grab samples along with their sample ID's
O6530 (A), O6537 (B), O6514 (C) and O6551 (D).
The rock chip samples collected by Antler at Kesya proved to be strongly and consistently mineralised
with REE, with an average of 1280 ppm (0.13%) Total Rare Earth Oxide (TREO) content, peaking at
6559 ppm (0.66%) TREO.
Encouragingly, these samples also show consistently high contents of neodymium- and praseodymium
oxide - key primary materials in the manufacture of strong permanent magnets for powerful motors, used
in such devices as large, wind turbines, increasingly utilised in the global renewable energy sector.
Neodymium and praseodymium oxides average 29% of the Total Rare Earth Oxide (TREO) content of
the rock chip samples collected from Kesya (Figure 5).
Figure 5.) Pie Chart showing average grades of Individual REO's from the Kesya sampling campaign.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_antler5en.jpg
Figure 6.) Images of rock chip grab samples from field mapping at Kesya.
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/5124/165868_antler6en.jpg
Summary of most recent grab assay results
Y2O3
La2O3
Ce2O3
Pr2O3
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb2O3
Dy2O3
Ho2O3
Er2O3
Tm2O3
Yb2O3
Grab
Sample
TREO
%
X
Y
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ppm
ZED001
0.146
654528
8243994
99
199
423
83
428
95
20
61
7
27
4
8
1
5
ZED003
0.03
654528
8243994
19
44
117
17
78
16
3
10
1
5
1
2
0
1
ZED004
0.117
654453
8243961
53
181
457
63
296
53
10
28
3
13
2
5
1
4
ZED005
0.125
654603
8243960
66
186
477
67
322
57
11
31
3
15
2
6
1
4
ZED006
0.122
654528
8243938
62
186
463
66
311
58
12
33
4
15
2
5
1
4
O6501
0.127
655936
8242155
130
186
454
62
285
50
9
35
4
23
4
12
2
12
O6503
0.097
655859
8242297
48
147
370
52
247
43
8
26
3
12
2
4
1
3
O6504
0.202
655543
8242438
94
335
805
109
488
81
15
50
6
23
3
8
1
5
O6505
0.089
655536
8242197
42
149
341
46
213
39
9
26
3
11
2
4
0
3