CLASSIC MINERALS LIMITED (ASX: CLZ) (Classic or Company) is pleased to announce that it has entered into a binding agreement with Reed Exploration Pty Ltd (Reed Exploration), a wholly owned subsidiary of ASX-listed Hannans Ltd (ASX: HNR), to purchase the mining tenements comprising the Forrestania Gold Project (other than the tenements comprising the Kat Gap discovery, which are already owned by Classic) (FGP Tenements).
In 2017, Classic acquired 80% of the gold rights on the FGP Tenements from a third party, with Reed Exploration retaining its 20% interest in the gold rights associated with the FGP Tenements.
Classic has now agreed to purchase the FGP Tenements. The key terms of the agreement are: Classic will pay $50,000 as a non-refundable deposit payable on execution of the binding tenement sale agreement; Classic will, on or before 30 November 2023: o as consideration for the FGP Tenements: ? pay Reed Exploration $200,000 as cash consideration and issue to Reed Exploration 500,000,000 fully paid ordinary shares in Classic at a deemed issue price of $0.001 per share and pay Reed Exploration $106,196 as reimbursement for amounts paid to maintain the FGP Tenements in good standing; the parties will use all reasonable endeavours to seek and obtain all necessary approvals (including shareholder approvals) by no later than 30 November 2023 and on satisfaction of the above conditions, title to the FGP Tenements will be transferred to Classic.
As a consequence of the acquisition of the FGP Tenements, Classic will have the rights to explore for gold and all other minerals, including lithium and nickel.
Chairman, John Lester said: 'This indeed is an exciting opportunity for our Company. We now can proceed to exploit the gold resource on this tenement 100% instead of having only 80% of the gold rights. Dean Goodwin will also be able to explore for other minerals for the Company's benefit. Congratulations to the entire management team.'
ABOUT THE FORRESTANIA GOLD PROJECT
Classic has inferred and indicated mineral resources of 8.41 Mt at 1.45 g/t for 391,417 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a Scoping Study suggesting both the technical and financial viability of the project.
Forward Looking Statements - Disclaimer
This ASX announcement (Announcement) has been prepared by Classic Minerals Limited ('Classic' or 'the Company'). It should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this Announcement. This Announcement contains summary information about Classic, its subsidiaries and their activities which is current as at the date of this Announcement. The information in this Announcement is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Classic. By its very nature exploration for minerals is a high-risk business and is not suitable for certain investors. Classic's securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Classic and of a general nature which may affect the future operating and financial performance of Classic and the value of an investment in Classic including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel. Certain statements contained in this announcement, including information as to the future financial or operating performance of Classic and its projects, are forward-looking statements that:
Classic disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words 'believe', 'expect', 'anticipate', 'indicate', 'contemplate', 'target', 'plan', 'intends', 'continue', 'budget', 'estimate', 'may', 'will', 'schedule' and similar expressions identify forward-looking statements. All forward-looking statements made in this announcement are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
Contact:
Email: contact@classicminerals.com.au
CLASSIC MINERALS LIMITED 
