Variscan Mines Limited (ASX:VAR), a growth-oriented natural resources company focused on acquiring, exploring, and developing high-quality strategic mineral projects, has provided an update on its Callabonna Project in South Australia. The update follows an announcement by Red Metal Limited regarding the execution of joint venture term sheets with Chalice Mining Limited related to exploration licenses within the Callabonna Project. Variscan holds a 49% interest in Exploration Licence EL6318, a key part of the Callabonna Project located on the northern margin of the Curnamona Province in South Australia.
According to the announcement, Chalice Mining may earn an interest in Red Metal’s rights within EL6318 by funding exploration activities on the tenement over the coming years. This includes a minimum commitment of two basement drill tests within the first 12 months. Variscan’s 49% interest in EL6318 remains unchanged because of this proposed transaction.
Variscan also confirmed that its rights under the existing Heads of Agreement (HOA) with Red Metal remain unaffected by the terms of the new arrangement between Red Metal and Chalice Mining. The company welcomes the involvement of Chalice Mining, anticipating that the additional exploration funding and technical capability will benefit the project. Variscan looks forward to the advancement of exploration activities at Callabonna, including planned basement drilling targeting large geophysical anomalies considered prospective for Iron Oxide Copper-Gold (IOCG) mineralisation.
The proposed arrangement between Red Metal and Chalice Mining is conditional upon Variscan’s consent under the existing HOA. Variscan has committed to keeping shareholders informed of any material developments related to the Callabonna Project.
