Terra Metals Limited (ASX: TM1) (“Terra Metals” or “the Company”) has taken a bold step in solidifying its presence in the West Musgrave region. The company announced that it has entered into an option agreement to acquire 100% of HRM Exploration Pty Ltd (“HRM”). HRM holds four exploration licences covering 618 km², which are contiguous with Terra’s flagship Dante copper-gold-platinum group metal-titanium-vanadium (“Cu-Au-PGM-Ti-V”) project in Western Australia.
This acquisition will significantly strengthen Terra’s already substantial position in the highly prospective Jameson Layered Intrusion, a geological setting analogous to South Africa’s Bushveld Province. The binding term sheet, executed between Terra, HRM, and HRM’s sole shareholder, Hardrock Minerals Limited, grants Terra a 12-month exclusive option to acquire 100% of HRM’s issued capital.
Strategic Expansion with Low-Cost Acquisition
The acquisition option, structured as an all-scrip deal, enables Terra to nearly double its tenement position. This consolidation provides several operational benefits, including logistical efficiencies and streamlined permitting processes. The newly optioned tenements contain extensions of the Jameson Layered Intrusion, which hosts the high-grade Dante Reefs polymetallic discovery.
Terra’s Managing Director and CEO, Mr. Thomas Line, sees this as a crucial growth opportunity. He stated, “This is an opportunistic transaction to build upon our existing tenement holding in the West Musgrave region, which has the potential to become a globally significant critical minerals hub for Australia.”
Dante Project: A Strong First-Year Performance
Terra has achieved significant milestones in its first year of exploration at the Dante Project, including:
- Drilling over 18,000 metres across three successful programs.
- Discovering two large copper-gold-PGM-titanium-vanadium deposits.
- Establishing a permanent site camp in the West Musgrave.
- Strengthening relationships with Traditional Owners.
- Securing two Exploration Incentive Scheme (EIS) grants from the WA Government worth $420,000.
- Completing two capital raisings, generating over $8 million for exploration.
The Company remains focused on advancing the Dante Reefs discovery and assessing priority targets.
Key Commercial Terms of the Option
Under the agreement, Terra has paid an option fee of 8,333,333 fully paid ordinary shares. The Company can exercise the option anytime within the next 12 months, at which point the acquisition will be settled through additional share-based payments.
If exercised, Terra will issue:
- 7,500,000 fully paid shares at settlement, subject to escrow periods.
- Up to 11,250,000 additional shares upon achieving key milestones, including drill intercept results and a JORC Code Mineral Resource estimate.
The option period also requires Terra to cover tenement rents, heritage payments, and minimum expenditure requirements. Importantly, the Company will not raise additional capital for this acquisition.
Dante Project’s Potential as a Global-Scale Discovery
The Dante Project sits within the Jameson Layered Intrusion, an area geologically similar to South Africa’s Bushveld Complex. The project hosts multiple mineralised layers containing copper, gold, platinum group metals, titanium, and vanadium. Terra has already identified at least 20km of mineralised strike, with significant exploration upside remaining.
Recent Drill Results Confirm High-Grade Titanium and Polymetallic Potential
Yesterday, Terra announced further impressive drill results from Reef 1 at the Dante Project. The latest assays confirm high-grade titanium from surface, alongside copper, PGMs, and vanadium, over a 2.5km strike length.
Selected intercepts include:
- 9m at 18.6% TiO₂, 0.58g/t PGE, 0.16% Cu, and 0.70% V₂O₅ from surface (URC037).
- 10m at 18.0% TiO₂, 0.52g/t PGE, 0.13% Cu, and 0.65% V₂O₅ from surface (URC044).
- 4m at 21.3% TiO₂, 0.82g/t PGE, 0.14% Cu, and 0.93% V₂O₅ from 5m depth (URC045).
More results are pending from 33 additional drill holes targeting shallow, high-grade mineralisation.
Mr. Thomas Line emphasised the significance of these findings, stating, “Drill results from our second program at Reef 1 North continue to confirm the scale, grade, and continuity of mineralisation from surface over a 2.5km strike. The latest assays highlight the project’s potential as a significant multi-commodity discovery.”
Path Forward: Exploration and Economic Assessment
Terra Metals remains committed to advancing the Dante Project through exploration drilling and economic assessment. The focus will be on evaluating the Dante Reefs discovery, testing new drill targets, and reviewing the newly optioned tenements.
The Company is positioning itself as a leader in Australia’s emerging critical minerals sector. Terra has a strong tenement portfolio and encouraging exploration results, which position it for future success in 2024. According to data from Grand View Research, the global titanium market, valued at approximately USD 2.44 billion in 2023, is set for steady expansion, with a projected CAGR of 6.2% from 2024 to 2030. This growth is largely driven by the booming travel and tourism industry, which has fueled the civil aviation sector’s demand for titanium.
Figure 2: Titanium Market Size and Predictions (Credit: Grand View Research)
Investor’s Outlook
TERRA METALS LIMITED (ASX: TM1) remains a stock to watch, with its latest announcement carrying potential implications for investors. At a last traded price of AUD 0.033, TM1 has a market capitalisation of AUD 13.10 million (as of January 29th, 2025). The stock has fluctuated between $0.019 and $0.105 over the past 52 weeks, indicating volatility and potential for growth. With 397,220,910 shares on issue, any significant developments could impact liquidity and valuation.
The Company’s expansion at the Dante Project in West Musgrave presents a compelling opportunity. Hosting major copper, gold, platinum, titanium, and vanadium discoveries, the project aligns with key growth sectors, including clean energy and battery storage. Terra Metals’ option to acquire 618 km² of adjacent tenements further strengthens its position, enhancing high-grade exploration potential. Supported by strategic synergies and native title agreements, this low-cost, high-reward initiative reinforces Terra Metals’ long-term value proposition.