en.Wedoany.com Reported - Scorpion Minerals Limited (ASX:SCN) has secured A$2 million in financing from Ander Resources Limited through a binding option agreement to advance the development of the "Old Mining Area" gold tenements within the Pharos Gold Project in the Murchison region of Western Australia.
Under the terms of the agreement, Ander will pay Scorpion a non-refundable A$2 million option fee within 21 business days, securing a 12-month exclusive option to enter into a future mining rights agreement for the "Old Mining Area." As part of the financing arrangement, Scorpion will issue 30 million unlisted options to Ander, structured in three tranches of 10 million each, with an exercise price of A$0.05 per option and expiry dates at 6, 12, and 24 months post-issuance, respectively.
Scorpion CEO Michael Fotios described the agreement as a "significant milestone," marking the company's transition from explorer to miner with the backing of an experienced and well-funded partner. He stated: "We are energized to advance a comprehensive work program at the Old Mining Area, targeting both near-term value and long-term resource growth. Planned activities include infill and extension reverse circulation drilling along the Old Mining Area-Middle Bore trend, oriented diamond drilling to test down-dip mineralization and obtain geotechnical and metallurgical samples, followed by approximately 1,500 meters of regional reverse circulation drilling. Supporting studies and preparatory work, open pit optimization, mining studies and mining proposal submissions, detailed geological mapping, 50-meter line-spaced airborne magnetics, and integrated litho-structural interpretation will underpin resource definition and de-risk our development pathway."
Should Ander exercise the option, it will be responsible for the procurement, management, and financing of mining, haulage, and processing activities at the "Old Mining Area." The proposed mining rights agreement includes a profit-sharing mechanism, whereby gold proceeds, after deducting royalties and cost reimbursements, will be split 50/50 between Scorpion and Ander.
Regarding the use of funds, Scorpion plans to utilize the capital to advance mining studies at the "Old Mining Area," including updating open pit optimization and scoping work, as well as conducting infill and extension reverse circulation drilling along the Old Mining Area-Middle Bore trend. The company also plans to undertake diamond drilling to test down-dip mineralization and collect geotechnical and metallurgical samples, alongside approximately 1,500 meters of follow-up regional reverse circulation drilling, detailed geological mapping, airborne magnetic surveys, and litho-structural interpretation.
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