Terra Metals Limited (ASX: TM1) (“Terra” or the “Company”) has officially exercised its option to acquire 100% of HRM Exploration Pty Ltd (“HRM”), marking a pivotal step in its growth strategy in the West Musgrave region of Western Australia. The acquisition will almost double Terra’s tenement footprint, strengthening its dominant position in one of Australia’s most promising polymetallic mineral provinces.
The newly acquired HRM tenements cover 618 square kilometres. They are directly contiguous with Terra’s flagship Dante Project, which has delivered significant discoveries of copper, titanium, gold, platinum, and vanadium in recent years. The all-scrip acquisition consolidates Terra’s presence in the Jameson Layered Intrusion, a geological complex considered analogous to the world-renowned Bushveld Complex in South Africa.
Locations of Important Projects of Terra Metals [Terra Metals]
Strengthening the Dante Project
The Dante Project is located within the Giles Complex, in proximity to BHP’s Nebo-Babel deposit, one of Australia’s largest undeveloped nickel-copper sulphide projects. Terra’s focus on this mineral-rich region has already yielded results: in 2024, the Company announced two substantial discoveries at Reef 1 North and Reef 2. These discoveries, hosted within a layered mafic-ultramafic intrusion, extend for over 20 kilometres of strike length.
Recent ground activities across HRM’s tenements have confirmed extensions of target mineralisation styles, reinforcing the belief that the Dante Project has substantial district-scale potential. In addition, Terra is progressing with metallurgical optimisation testwork and preparing a maiden Mineral Resource Estimate at the Dante Reefs discovery.
Commenting on the acquisition, Terra’s Managing Director and CEO, Mr Thomas Line, stated:
“We are excited to secure a dominant landholding in the emerging major metal province. Last year, we made two large copper-titanium-gold-platinum-vanadium discoveries at Reef 1 North and Reef 2. Recent metallurgical testwork has confirmed that mineralisation can produce three high-grade concentrates with high recoveries using simple and low-cost processing tools. We look forward to providing further updates on the expanded Dante Project in due course.”
Commercial Terms of the Acquisition
The acquisition was enabled under a binding term sheet signed between Terra, HRM, and Hardrock Minerals Limited, HRM’s sole shareholder. The term sheet granted Terra a 12-month exclusive option to acquire 100% of HRM’s issued capital, which has now been exercised.
Settlement of the acquisition is expected shortly, contingent upon standard closing conditions, including the accuracy of warranties provided by HRM and HRM’s continued compliance with its obligations under the agreement.
Consideration Structure
The consideration for the acquisition will be delivered entirely in Terra shares, divided into two tranches:
- Upfront Shares
- Deferred Shares (up to 11,250,000 shares), to be issued based on achievement of the following performance milestones:
Milestone 1 (By 28 August 2027):
- Cumulative drill intercepts from new drilling on HRM tenements must total at least 10% Cu equivalent (including Ni, Cu, Co, Au, Pt, Pd, Rh) at a cut-off grade not less than 0.5%, AND
- The Company’s share price must reach a volume-weighted average price (VWAP) of at least $0.10 for 20 consecutive trading days in which its shares are actively traded on the ASX, by or before 28 August 2027.
- 3,750,000 shares issued upon fulfilment
Milestone 2 (By 28 August 2027):
- Cumulative drill intercepts must total at least 20% Cu equivalent at the same cut-off grade, AND
- VWAP must reach at least $0.15 over 20 consecutive trading days
- 3,750,000 shares issued upon fulfilment
Milestone 3 (By 28 August 2028):
- An independently assessed JORC Code Mineral Resource of at least 150,000 tonnes of Cu equivalent at at least 0.5% Cu equivalent cut-off must be announced
- 3,750,000 shares issued upon fulfilment
The structuring of these milestones reflects Terra’s focus on performance-driven growth and ensures alignment with shareholder interests.
Strategic Importance of the Jameson Layered Intrusion
The Jameson Layered Intrusion, where both the Dante and HRM tenements are situated, is a layered mafic-ultramafic complex believed to host a variety of metal-rich “reef” layers. Depending on their stratigraphic position, these layers may yield different mineral assemblages, mirroring the multi-metal potential of South Africa’s Bushveld Complex.
Several untested mineralised reefs have already been mapped across the broader Dante tenement area. These reefs represent high-priority drill targets and offer further exploration upside that could underpin additional resource growth and future economic development.
Reprocessed geophysical map of the West Musgrave Region highlighting the prospective Jameson Layered Intrusion, known deposits, and the combined Dante and HRM tenement areas. [Terra Metals]
Next Steps
With the acquisition nearing final settlement, Terra will integrate the HRM tenements into its exploration planning. The Company anticipates continued drilling, further metallurgical analysis, and, ultimately, an update to its resource inventory. The expanded Dante Project now covers a large and highly prospective area, significantly improving Terra’s ability to unlock the potential of this underexplored region.
Investor’s Outlook: Terra Metals Limited (ASX: TM1)
As of today’s trading (7 May 2025), Terra Metals maintains a modest market capitalisation of $9.78 million, reflecting its early-stage development status but also its considerable exploration potential.
- Last Price: $0.024
- Today’s Change: Stable
- Market Cap: $9.78 million
- Shares on Issue: 407,635,062
- 52-Week Trading Range: $0.017 – $0.105
- 1-Month Share Performance: +14.29%
The acquisition of HRM and expansion of the Dante Project bolsters Terra’s position as a compelling speculative investment in the Australian critical minerals sector. With a strong land package and early discovery success, Terra Metals is well-positioned to capitalise on the rising demand for copper, gold, platinum group elements, and battery metals.
Investors seeking exposure to early-stage resource development in one of Australia’s newest metal provinces will want to monitor Terra’s progress through 2025 closely.
