Cosmo Metals (ASX:CMO) expanded the Kanowna Gold Project in Western Australia with the acquisition of three additional tenements contiguous with the project, according to a Tuesday filing with the Australian Securities Exchange.
The commercial terms of the acquisition include AU$50,000 cash paid to the seller on execution, AU$75,000 in Cosmo Metalsâ shares, and a 1% net smelter royalty.
The tenements cover a further 2.5-kilometer extension of the Kanowna Shear Zone, a key structure controlling gold mineralization in the region, the company said.
The company is set to begin a reverse circulation drilling program to test high priority targets in the project, followed by an aircore drilling program to follow up on known gold mineralization areas, according to the filing.
Shares fell more than 2% in afternoon trading.
Price (AUD): $0.04, Change: $, Percent Change: -2.27%
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