Why Did OZZ Grant Scorpion a $2.5M Option on Maguires Reward?
OZZ Resources has entered a binding option agreement with Scorpion Minerals to sell its Maguires Reward project, securing an initial $100,000 fee and potential $2.5 million consideration pending shareholder approval. Exploration activity remained subdued across its portfolio during the December quarter.
- Binding option agreement signed with Scorpion Minerals for Maguires Reward project
- Initial $100,000 option fee received; $2.5 million consideration contingent on conditions
- Shareholder approval required due to disposal of main undertaking
- Limited exploration activity across key projects during the quarter
- Cash position tight with $38,000 on hand and less than one quarter of funding available
Strategic Option Agreement with Scorpion Minerals
OZZ Resources Limited has taken a decisive step by granting Scorpion Minerals Limited an exclusive option to acquire 100% of its Maguires Reward gold project. The agreement, executed during the December 2025 quarter, includes an upfront option fee of $100,000, which OZZ has already received, and a potential further payment of $2.5 million in cash or shares upon exercise of the option and satisfaction of certain conditions.
This transaction represents a significant milestone for OZZ, as the Maguires Reward project constitutes the company’s main undertaking. Consequently, the sale is subject to shareholder approval under ASX Listing Rule 11.2, with a general meeting to be convened to provide shareholders with full details to inform their vote.
Exploration Activity Remains Limited
During the quarter, OZZ’s exploration efforts were largely on hold across its portfolio, including the Mt Davis, Pepper Tree (formerly Pinnacle Well), Rabbit Bore, and Peterwangy projects. No substantial on-ground work was undertaken, reflecting a strategic pause as the company focuses on advancing the Maguires Reward option and managing costs.
At Maguires Reward itself, soil sampling assays returned several low-level gold anomalies across four distinct target zones. These anomalies align with known mineralised structures and provide promising leads for a planned first-pass drilling program. The company is preparing to follow up with detailed field mapping and drilling to test these priority targets.
Financial Position and ASX Suspension
OZZ reported a net cash outflow of $44,000 for the quarter, primarily driven by exploration tenement costs and corporate administration expenses. The company ended the period with $38,000 in cash, representing less than one quarter of funding based on current expenditure levels. Payments to related parties amounted to $16,000, covering office rent and accounting services.
The company remains suspended from trading on the ASX pending compliance with listing rules, including continuous disclosure obligations. OZZ withdrew from a previously proposed transaction during the quarter and is actively reviewing new project and business acquisition opportunities while maintaining a tight operational budget.
Looking Ahead
OZZ’s immediate focus will be on securing shareholder approval for the Maguires Reward option agreement and advancing exploration at the project through drilling and further geological assessment. The company’s ability to extend its cash runway or secure additional funding will be critical to sustaining operations and unlocking value from its assets.
Bottom Line?
OZZ’s option deal with Scorpion Minerals offers a lifeline but underscores the urgency of securing funding and shareholder backing.
Questions in the middle?
- Will shareholders approve the disposal of OZZ’s main asset under the option agreement?
- How will OZZ fund exploration and operations beyond its limited cash reserves?
- What are the prospects and timelines for drilling results at Maguires Reward?
