The explorer, whose shares rallied more than 50% earlier this week, will pay vendors Explora Mineral A$200,000 in cash and shares for the Falun mine lease.
It will increase its total holdings in the Bergslagen mining district from 275sq.km to 312sq.km.
The Bergslagen district is home to some of the largest polymetallic deposits globally, including Zinkgruvan and Garpenberg, but despite that Alicanto claims it its relatively underexplored.
Alicanto moved into the area in 2019 and noted the Falun mine delivered a reported 28 million tonnes grading 4% copper, 5% zinc, 2% lead, 35 grams per tonne silver and 4gpt gold over around 1000 years, before its closure in 1992 due to low commodity prices.
There has been no significant exploration at the mine since.
While the surrounding area has been explored by the likes of Australia’s Drake Resources and OZ Minerals in years past, Alicanto has been perhaps the most successful.
It has defined a resource at Sala to the south, which it compared to Garpenberg, and this week highlighted the promise below a small underground mine at Skyttgruvan, 3.5km along strike from Falun.
Picking up the Falun lease, which involves just $40,000 of cash, boosts its control to over 60km of the target limestone horizon that contains the visual polymetallic massive to semi massive-sulphide mineralisation in the first drill hole at the Skyttgruvan-Naverberg.
Alicanto’s geologists are now compiling and reviewing the data from the Falun mine, and no doubt have some ideas about where to target.
Managing director Rob Sennitt said the deal was an “exceptional acquisition opportunity” to increase its control on what could be a major mineralised belt.
It originally viewed Greater Falun as a volcanogenic massive sulphide opportunity, but has more recently targeted skarn mineralisation, flagging a 75km-long belt that extends from Falun.
Sennitt said Alicanto now has “access to some of the most prospective tenure in the area”.
The deal is contingent on due diligence and regulatory approvals.
The company ended September with $2.9 million cash, and assuming shareholders’ approval a second tranche today, it will increase its cash balance by $1.7 million.
