- 01NYM to buy Redhill Cu, Chile, from 29Metals.
- 02Inferred 4.3 Mt @1.7% Cu; 33 g/t Ag; 0.3 g/t Au.
- 03Deal: 20m NYM shares + A$1m milestone; 29Metals funds at A$0.10.
Narryer Metals (ASX: NYM) has agreed to acquire 100% of the Redhill project from 29Metals (ASX: 29M), giving it a high-grade copper and precious metals project in southern Chile with an established resource and substantial exploration footprint.
The advanced Cutters Cove area hosts an Inferred mineral resource of 4.3 million tonnes at 1.7% copper, 33 grams per tonne silver, and 0.3g/t gold, alongside an Exploration Target of 16.1Mt to 48.9Mt at 1.2% to 2.6% copper.
The Exploration Target also carries 34g/t to 55g/t silver and about 0.4g/t gold, although its potential quantity and grade remain conceptual because exploration is insufficient to estimate a resource and further work may not result in one.
Acquisition consideration comprises 20 million new Narryer shares and an A$1 million milestone payment, in cash or shares, if a 12Mt resource grading at least 2% copper equivalent is delineated.
29Metals will also invest A$1m in Narryer through a placement at A$0.10 per share, an approximately 54% premium to Narryer’s pre-transaction market price.
Redhill Project Specs
Redhill lies 110 kilometres southwest of Punta Arenas and includes 1,620 hectares of exploitation concessions around Cutters Cove plus 14,600 hectares of exploration concessions extending for about 150km along the Rocas Verdes belt.
Mineralisation at Cutters Cove remains open across the current 5km strike, with the existing resource distributed across several deposits and multiple identified prospects yet to be drill tested.
“The Redhill copper project represents a rare, district-scale opportunity in a premier, mining-friendly jurisdiction,” executive chair Richard Bevan said, adding that the company was “excited to secure such a prospective copper project on what are considered attractive terms”.
Cutters Cove produced copper in the early 1900s and again commercially from 1970 to 1975, when 212,000 tonnes of ore grading 1.72% copper were mined.
Most previous drilling was relatively shallow, with mineralised intersections generally less than 200 metres (m) deep, while 2022 fieldwork identified extensions to known veins and additional mineralisation outside the existing resource.
Deal Structure Aligns Interests
Narryer is acquiring all shares in Redhill Magallanes SpA, which owns the project, with the 20 million upfront consideration shares to be escrowed for 12 months from issue.
The milestone can be paid in cash or Narryer shares, with any shares priced using the 10-day volume-weighted average price and requiring shareholder approval.
Placement shares issued to 29Metals will also be escrowed for 12 months, while the A$1m raised is earmarked for further exploration at Redhill and working capital.
Completion remains subject to regulatory conditions precedent typical for the transaction being satisfied by 31 December 2026, with Dean Hildebrand to join the board as a non-executive director after completion.
Three-Year Drilling Program
Narryer plans a staged three-year drilling campaign beginning with about 7,000m of diamond drilling across an area corresponding to 5Mt to 15Mt of the Exploration Target, aimed at increasing the current Inferred mineral resource.
The second and third stages would each test areas corresponding to a further 5Mt to 20Mt, including sedimentary-hosted mineralisation and deeper extensions to known mineralisation.
Near-term work will focus on regulatory drilling approvals, reviewing previous conceptual mine and metallurgical studies, and preparing short-hole drilling and structural mapping around priority Cutters Cove prospects.
Narryer will also review regional opportunities across the broader tenure while preparing the first diamond drilling phase once permitting allows.
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