PERTH (miningweekly.com) – Mining hopeful EZA Corporation has exercised its rights over the Challa gold and base metals project, in Western Australia, following a due diligence.

The company in July this year secured an exclusive right over the Challa project, which covers some 1 750 km2.

EZA paid A$25 000 for an exclusive due diligence period, and with the decision to now exercise its options, would pay the vendor a further A$50 000. A further A$100 000 cash payment would be due on EZA resuming trading on the ASX, with the company to issue the vendor with one-million shares and one-million options, exercisable at 25c each and expiring within three years of EZA listing on the ASX.

The vendor would also be issued with a 0.4% net smelter royalty on any future production from the Challa project.

EZA said on Monday that the company will undertake a capital raising of some A$1-million, through the issue of 10-million shares at 10c each, to ensure that the company had a sufficient level of shareholders to meet the ASX listing requirements.

In addition to shareholder approval for its equity raising, EZA would also look for approval to change its name to Santa Fe Minerals before resuming trading on the ASX.