Future Battery Minerals (FBM) is set to acquire 85 per cent of Coolgardie Nickel, a wholly owned subsidiary of Corazon Mining.
Coolgardie Nickel currently holds the lithium and industrial mineral rights and tenement title for the Miriam nickel sulphide-lithium project in the eastern Goldfields region of Western Australia.
The Miriam project is located immediately north of FBM’s flagship Kangaroo Hills lithium project. The transaction will allow FBM to consolidate prospective landholdings in the region.
The transaction will see FBM acquire 85 per cent of Miriam’s lithium and industrial mineral rights, with Corazon to retain the remaining 15 per cent and retain 100 per cent of Miriam’s base and precious metals rights.
The offer comprises $2 million up-front ($1 million in cash and $1 million in FBM shares) and up to a further $7.5 million when project milestones are achieved.
“Given our strong belief in the Kangaroo Hills lithium project, this acquisition represents an opportunistic and logical move to further consolidate our landholding in the region,” FBM managing director Nicholas Rathjen said.
“The Miriam project offers a highly prospective, drill-ready opportunity. This strategic addition is on ground endowed with confirmed outcropping spodumene lithium-bearing pegmatites and we look forward to commencing work at Miriam immediately, conducting detailed target generation with first drilling to commence during Q3 CY24 (the third quarter of 2024).”
Corazon will use the divestment funds to advance activities at its Lynn Lake nickel-sulphide project and Mount Gilmore copper-gold-cobalt project.
“This investment allows Corazon to remain focused on its nickel sulphide assets in Australia and Canada, as well as advancing the Mount Gilmore copper-cobalt-gold project in New South Wales,” Corazon said.
The transaction is expected to be completed in May 2024.
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