Clancy Exploration Limited (CLY) is pleased to announce that a binding Memorandum of Understanding has been signed with Australian Mineral and Waterwell Drilling Pty Ltd (AMWD) whereby AMWD will become CLY’s preferred drilling contractor for a $5 million drilling contract or a three year period, whichever occurs first. Drilling services will be provided at a 25% cash discount to the going market rate.
Clancy’s Managing Director Gordon Barnes said that the agreement would enable CLY to lock in a long term, aggressive drilling program with a capable and reliable drilling contractor. “We have been working with AMWD for several years now and in that time they have grown into a very successful drilling business with a strong focus on service and reliability. So we are delighted to secure AMWD’s services for a long term contract that will provide certainty for our exploration team whilst minimising up-front dilution for our shareholders because less capital will be required for future drilling. It will also allow our highly prospective portfolio to be drill tested without the delays that can be caused by lack of rig availability” said Mr Barnes.
AMWD will invoice CLY monthly for a cash amount equivalent to 75% of all agreed costs associated with drilling and CLY will issue fully paid ordinary shares in CLY to AMWD for the balancing amount of 25%. Shares issued to AMWD will be priced at 95% of the three day Volume Weighted Average Price at the date of invoice. CLY shares issued to AMWD will be escrowed for 12 months.
CLY will also make a one off issue of 2,000,000 listed options (CLYO) to AMWD upon signing of a drilling earn- in agreement expected to be completed within the next six weeks.
Clancy Exploration (CLY) is an Australian-focused copper, gold, base metals and tin explorer. The Company’s portfolio consists of copper-gold projects in the Lachlan Fold Belt of NSW, base metal and tin projects in the Mount Read Volcanic Belt of Tasmania, Nadbuck near Broken Hill in NSW and Yalgoo, adjacent to the Golden Grove mine in Western Australia.
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