Macro Metals has signed an agreement to earn an 80% interest in four manganese tenements in the Eastern Pilbara region of Western Australia (WA) from Firebird Metals.
The deal involves minimum drilling commitments over 12 months for the Wandanya (E46/1456 and E46/1457), Disraeli (E46/1389) and Midgengadge (E45/5906) tenements.
Under the agreed terms, Macro Metals will invest A$150m ($99.82m) in exploration and development on the Wandanya, Disraeli and Midgengadge tenements.
This investment will fund at least ten reverse circulation drill holes, with a minimum of 100m drilled on each tenement.
Firebird will retain a 20% interest, which will be free carried until Macro decides to mine, at which point a joint venture (JV) will be formed.
The JV will engage Macro’s subsidiary, Macro Mining Services, to provide comprehensive mining services.
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Additionally, Firebird has the option to convert its 20% interest into a 1% royalty and is entitled to a 1% sales commission on free on board revenue.
The completion of this transaction is subject to due diligence and necessary approvals, with a deadline set for 30 September 2024.
Firebird managing director Peter Allen said: “This agreement allows Firebird to continue its strategic focus on the Oakover Project and our Chinese LMFP strategy.
“By partnering with Macro, we leverage their expertise and resources to drive the development of these tenements, which not only ensures that they receive the necessary investment and development attention but also allows Firebird to benefit from potential production and value growth without immediate capital outlay.
“We are confident that this collaboration will unlock value for our shareholders and look forward to a prosperous collaboration with Macro.”
