By: Mining.Com.AU

Connected Minerals (ASX:CML) has entered a binding share sale agreement to wholly acquire Frontier Group CRM. Frontier holds an 80% interest in the Bailundo Carbonatite Project in central Angola via an indirect interest in the holder of the Bailundo licence.

The licence is currently governed by a Mineral Investment Contract, granting rights for copper exploration. Under the Angolan Mining Code, the holder is eligible to apply for additional minerals to be included as they are identified in the concession area.

Frontier has already submitted the licence application to include niobium, phosphorus, and rare earth elements. Gallium will also be evaluated as part of an exploration program.

The 2,054km2 licence covers a large-scale, 7km diameter carbonatite complex, with historical exploration and recent validation sampling confirming high-grade niobium and rare earth elements.

Key results include three vertical channel samples from depths of up to 2.1m, returning up to 2.1% niobium pentoxide (average 1.2%), as well as up to 7.7% total rare earth oxides, including up to 1.3% neodymium-praseodymium.

Concurrently, additional results from 28 soil samples returned up to 1.9% niobium pentoxide and up to 2.8% total rare earth oxides, with nine rock chip samples returning up to 1% niobium pentoxide and up to 1.7% total rare earth oxides.

Connected secures key leadership and funding to follow through with Angola plans

In addition to the acquisition, Connected Minerals announces that it has appointed Quentin Flannery as non-executive Chairman and Stephen Wetherall as Chief Executive Officer, who brings 12 years of in-country experience to the role.

Flannery brings over 20 years of experience in global commodity markets to the role, as well as a strong record of funding and advancing mining projects globally.

Wetherall has 25 years of experience working across Africa, Australia, Europe, and the UK in global mining and capital markets. Most recently, he served as CEO and managing director of an ASX-listed company with operations in Angola.

Incoming Chief Executive Officer Stephen Wetherall says that the transaction represents “a significant opportunity to explore a large-scale, carbonatite complex that includes high-grade niobium and rare earth mineralisation”.

“Few carbonatite systems globally present this combination of scale, grade, and near-surface mineralisation, particularly within an emerging jurisdiction with improving infrastructure,” Wetherall adds.

As part of the transaction, Connected Minerals is also undertaking a placement to raise an aggregate total of $4.5 million through the issuance of 27,272,727 shares at an issue price of $0.165 per share.

The placement is not underwritten and is proposed for completion in one tranche, subject to shareholder approval at a general meeting in late June or early July.

Financial services firm 708 Capital acted as lead manager in the placement and will receive a management fee of 2% of gross proceeds and a selling fee of 4% of gross proceeds raised.

Connected Minerals is an Australian company focused on the exploration and potential development of a portfolio of projects in Namibia, Angola, and Western Australia.