Canadian Phosphate (ASX:CP8) said it has signed a binding agreement to acquire the Diamond Mountain phosphate project in Utah, US, from Revival Gold and Utah Minerals Resources for total consideration of up to $3 million, according to a Monday Australian bourse filing.
The total consideration includes upfront consideration of $1.5 million and deferred consideration of up to $1.5 million.
The company said a foreign estimate reports 26.8 million tonnes of measured and indicated resources and 23.1 million tonnes of inferred resources, averaging 19.67% phosphorus pentoxide in a seam averaging 4.4 meters in thickness, adding that the estimate is not reported in accordance with the JORC Code.
Following completion of the acquisition, the company intends to undertake a detailed technical review and validation of the foreign estimate, advance exploration and resource definition programs, and evaluate development pathways, it said.