New Energy Minerals plans to kick off an exploration campaign as soon as possible after taking on the Hurricane gold and antimony project in Far North Queensland.

The company has a conditional agreement to acquire project owner Placer Gold, subject to shareholder approval.

It is also about to launch a capital raising of $5 million through an entitlement issue to the company’s existing shareholders.

“Following the review of numerous mineral project opportunities over the past 18 months, the directors were delighted to secure favourable terms with the vendors of the Hurricane project in Queensland,” non-executive chairman Ian Daymond said.

“The Hurricane gold project represents an excellent opportunity to acquire 100 per cent of highly prospective gold assets in a good location at an attractive price.

“Our experienced team has the capabilities and skills to ensure the company is well positioned to advance the
project.

“With extensive rock chip sampling by Placer Gold of outcropping gold mineralisation confirming the presence of high-grade, oxidised gold in numerous vein systems, we are very optimistic about the potential of this
project.”

The Hurricane project is located about 90km west of Port Douglas and 53km south-west of EQ Resources’ Mount Carbine tungsten operation.

Related: EQ Resources adds oomph to drilling effort

Mr Daymond said the company planned to commence systematic exploration of the numerous outcropping gold veins
found in the Hurricane project area as soon as practicable.

It would begin with a high resolution airborne geophysical survey, followed by drilling, he said.

Average gold-in-rock chip values from samples at the site include 18.92 g/t gold from seven samples collected along the Typhoon Vein.

Some rock chip samples from the quartz breccia veins have contained significant antimony (Sb) grades, with average antimony-in-rock chip values including 19.1 per cent antimony rom 24 samples collected within the Holmes Vein (with
grades ranging from 0.005 per cent to 20.8 per cent).

The deal to acquire Placer involves a consideration of 2.6 million New Energy shares plus $255,000 in cash ($50,000 already paid with the balance payable on New Energy’s planned re-listing). The cash component is re-imbursement for prior expenditure on the Hurricane project.

The company is preparing a comprehensive Notice of General Meeting and accompanying Explanatory Statement for the purposes of seeking requisite approvals from shareholders to acquire the Hurricane project and proceed towards re-admission to the ASX.

New Energy Minerals proposes to change its name to Goldoz, subject to shareholder approval.