Terra Metals Secures 618km² Option Adjacent to Dante Project in Low-Cost Deal
Terra Metals has secured an option to acquire a large tenement package adjacent to its flagship Dante Project, significantly expanding its exploration potential in Western Australia's West Musgrave region.
- Option to acquire 618km² contiguous tenements adjacent to Dante Project
- Acquisition nearly doubles Terra Metals’ landholding in West Musgrave
- Low-cost, all-scrip deal with performance-based deferred shares
- Tenements host extensions of the Jameson Layered Intrusion, analogous to South Africa’s Bushveld Complex
- Strong synergies with existing tenements including shared native title agreements
Expanding a Critical Minerals Hub
Terra Metals Limited (ASX:TM1) has taken a decisive step to consolidate and expand its presence in Western Australia's West Musgrave region by securing a 12-month option to acquire 100% of HRM Exploration Pty Ltd. This acquisition would add a contiguous 618 square kilometres of tenements directly adjacent to Terra’s flagship Dante Project, nearly doubling its landholding in one of Australia’s most prospective critical minerals provinces.
The Dante Project is already notable for its polymetallic copper-gold-platinum group metal-titanium-vanadium (Cu-Au-PGM-Ti-V) discoveries hosted within the Jameson Layered Intrusion, a geological formation analogous to the world-renowned Bushveld Complex in South Africa. The new tenements under option contain extensions of this layered intrusion, offering significant upside for further high-grade mineralisation discoveries.
Strategic and Cost-Effective Acquisition
The deal is structured as an all-scrip, low-cost acquisition with an upfront payment of 8.3 million Terra Metals shares as a non-refundable option fee. Should Terra exercise the option within the next 12 months, the consideration includes an additional 7.5 million shares upfront and up to 11.25 million deferred shares contingent on hitting key exploration milestones, such as cumulative drill intercepts and resource announcements.
This performance-based structure aligns the acquisition cost with the success of exploration activities, mitigating upfront financial risk while incentivising rapid progress on the new tenements. Importantly, the optioned tenements share native title agreements with the same Traditional Owners as Terra’s existing holdings, streamlining community engagement and operational logistics.
Building on Early Successes
Since commencing exploration in the West Musgrave region, Terra Metals has drilled over 18,000 metres across three drilling campaigns, resulting in two major polymetallic discoveries within the Dante Reefs. The company has also established permanent site operations and fostered strong relationships with Traditional Owners, underpinning its social licence to operate.
Government support has come in the form of two Exploration Incentive Scheme grants totaling $420,000, further validating the project’s potential. Terra’s Managing Director, Thomas Line, emphasised the strategic nature of the acquisition, describing it as an opportunistic move to build on the company’s leading position in what could become a globally significant critical minerals hub.
Looking Ahead
Terra Metals plans to prioritise economic assessments of the Dante Reefs discoveries while simultaneously reviewing the new tenements for priority drill targets. The layered nature of the intrusion suggests multiple mineralised reefs remain untested, each potentially hosting different economically valuable metals. This layered complexity mirrors the Bushveld Complex’s diverse mineralisation styles, raising the prospect of multiple high-value deposits within the expanded project area.
With no capital raising required for the acquisition, Terra Metals can focus its existing resources on advancing exploration and appraisal drilling. The next 12 to 24 months will be critical in determining whether the expanded footprint delivers on its promise, potentially reshaping Terra’s growth trajectory and the West Musgrave region’s standing in the critical minerals sector.
Bottom Line?
Terra Metals’ strategic tenement expansion sets the stage for a potentially transformative exploration phase in a globally significant mineral province.
Questions in the middle?
- Will Terra Metals meet the ambitious drilling and resource milestones to fully exercise the acquisition option?
- How will the expanded landholding impact Terra’s exploration budget and operational priorities?
- What new discoveries might emerge from the untested reefs within the newly optioned tenements?
