By: Mining.com.au

Rubix Resources (ASX:RB6) has entered into a non-binding agreement with Nyos Metals and Yoro Metals to acquire several exploration applications located in the Republic of Cameroon and the Republic of Congo, Central Africa. 

The Cameroon Project comprises two licences which are currently under application. No drilling or modern exploration has been conducted within the area. 

The Congo Project, contains six contiguous concessions across two regions, totalling 3,000km2 and is a project where no modern exploration work has taken place. Previously the most recent work undertaken was more than 50 years ago in the 1960s. 

As part of the proposed transaction, the company will pay $500,000 cash upon executing a formal binding agreement, as well as a further $500,000 cash and 5 million shares once the licence applications are granted. 

Rubix will pay an additional $200,000 cash and 5 million shares six months after the licences are granted, alongside 10 million performance rights which convert into shares upon announcing a resource estimate on any project of 50 million tonnes @ 42% aluminium oxide. 

A further 10 million performance rights will be issued after announcing the completion of a Scoping Study, which shows either a net present value of $500 million or more, or with an internal rate of return of at least 25%. 

The acquisition is subject to customary conditions precedent, including executing a binding agreement, completing due diligence, and receiving necessary approvals. 

Rubix Resources is a diversified base metals and gold-focused explorer with ten exploration licences in Australia and Canada.