Zeus takes control of Diaguili ahead of copper-gold drilling

Zeus Secures Majority Control of Diaguili

Zeus Resources Limited (ASX:ZEU) has moved from prospective buyer to project manager at Diaguili, completing the first tranche of its acquisition of Sab Metals Mauritania SARL and securing a 51% interest in the southern Mauritania copper-gold project.

The transaction follows the company’s Diaguili acquisition agreement, announced in July, which set out a staged path to acquire the remaining interest. Zeus said it has now assumed management of the project, which is covered by exploration permit 2475B2.

Cash and Equity Fund the First Tranche

Consideration for the first completion comprised US$350,000 in cash, after crediting a US$50,000 exclusivity fee already paid, plus 66,743,879 fully paid Zeus shares. Those shares carried a deemed issue price of A$0.00859 based on a 10-day volume-weighted average price and a deemed value of US$400,000.

The equity component makes the transaction partly share-funded, while the remaining acquisition stages leave further completion obligations ahead. The announcement does not provide the timing or detailed consideration for those later stages.

Drilling Expected Before Quarter End

Zeus expects drilling to commence during the current quarter. That timing provides the clearest near-term operational milestone, although the announcement does not specify the number of holes, target areas, metres or assay timetable.

The company had previously reported that due diligence was complete and environmental validation had been secured, while historical drilling included intersections of up to 22.25 metres at 2.10% copper. Those historical results were identified as non-JORC 2012 compliant and not independently verified in the Diaguili due diligence update. The forthcoming program therefore matters not simply as an exploration event, but as a potential opportunity to test the reliability and continuity of the historical indications under Zeus’s management.

Zeus’s broader funding position remains a relevant consideration: earlier coverage noted a material uncertainty over the company’s ability to continue as a going concern, alongside a reported post-year-end placement. The current filing does not state the funding available for drilling or later acquisition payments.