Caeneus has issued Poseidon with 100 million shares (notionally priced at A0.3c) after terminating a binding agreement last month due to its inability to raise the capital needed to fund the deal.

In the case of Pardoo, Caeneus has raised just over $100,000 (by placing 50 million shares at 0.2c) to begin a geophysical survey at the project, with the vendors to receive 750 million shares and 375 million options. A cash payment of $65,000 is also due as reimbursement for acquisition costs.

The deal will see the vendors, private company Port Exploration, end up with about 40% of Caeneus on a fully diluted basis.

Assuming all goes to plan, Caeneus can earn an 80% interest in Pardoo with expenditure of $500,000.

Pardoo was discovered by CRA in the early 1990s and was subsequently explored by ASX juniors Mithril and Segue.

It has a low grade inferred resource of 44.7 million tonnes grading 0.3% nickel and 0.13% copper.

Caeneus believes the source of the nickel and copper is derived from a large scale mafic-ultramafic intrusive complex immediately north of the deposit.

As well as aeromag, ground based gravity is planned in the short term.

Caeneus shares were unchanged at 0.3c in early trade.