Bayan Mining and Minerals (ASX:BMM) has completed the sale of its Bayan Springs North Project in Nevada, US, to Sun Silver (ASX:SS1) for up to $800,000.
The company received an initial $150,000 cash payment on completion, with a further $150,000 due in 12 months alongside contingent payments of up to $500,000 linked to exploration outcomes.
Bayan retains a 1.0% net smelter return (NSR) royalty over future production, which Sun Silver holds the right to repurchase 0.5% of for $2 million.
CEO Nathan Kong says the divestment delivers non-dilutive funding while retaining exposure through milestone payments and the NSR royalty.
“We are particularly encouraged that Sun Silver has subsequently consolidated a much larger land position around Maverick Springs, highlighting the strategic importance it places on the broader northwest corridor,” Kong says.
“We can now focus fully on advancing our rare earth portfolio, including the Desert Star Rare Earth Project and our proprietary processing technologies.”
Bayan Springs North sits adjacent to Sun Silver’s Maverick Springs Project, which hosts an inferred resource of 539 million ounces of silver equivalent (AgEq) at 71 grams per tonne AgEq.
Bayan has earmarked the proceeds of the sale for its Desert Star Project in California and its portfolio of rare earth processing technologies licenced from the Colorado School of Mines.
The company has also completed a maiden reverse circulation drilling program at Desert Star comprising 856m, with assay results expected in September.
Bayan Mining and Minerals is an explorer focused on sourcing critical minerals for the US clean energy and tech sectors. The company is also developing processing technologies spanning beneficiation, leaching, and resin-based separation.
Write to Paula Fabe at Mining.com.au
Images: Bayan Mining and Minerals
