Kermode Resources Ltd. [KLM-TSXV] entered into a non-binding letter of intent to acquire the Seahorse Saddle project from Southern Prospecting Pty. Ltd. (SPPL).
SPPL is a private company in Australia that owns 3 exploration licenses: E69/3940 (232 km2); E28/3178 and E28/3179 (985 km2). The project has been previously referred to as the Rawlinna Project because it is located at the Rawlinna station, 370 km to the east of Kalgoorlie via the Trans Access Road and 9 km to the south of the public access Trans Australia Railway line linking most major cities.
The project is a strategic tenement position with a single contingent land holding of 1,217 km2 adjacent to significant tenement holdings of the BHP Nickel West Seahorse Project. Geophysics completed by the Geological Survey of Western Australia shows potential for massive sulphide mineralisation under cover.
The LOI provides for a due diligence period extending to February 24th, 2022. During this period, company can elect to enter into a definitive agreement which will formalize the transaction. At any time in the due diligence period, Kermode may decide to exercise the option and acquire SPPL by issuing 25 million shares and 25 million warrants excercisable at 5 cents for five years.