In this week’s M&A Monday, numerous resources companies struck deals to acquire and divest land packages.
Bradda Head Lithium (AIM:BHL) has entered a conditional, definitive, and binding asset purchase agreement with Zeus Resources and its parent company, US1 Critical Minerals (ASX:USC), to acquire six prospecting uranium licences.
The acquisition would give Bradda Head a 100% interest in the licences in Tanzania, which include the Mkuju Project.
The deal has a total consideration of US$1.8 million ($2.53 million), including US$1 million upon completion; $300,000 in cash or shares when Bradda Head establishes an indicated or measured mineral resource of at least 25 million pounds of triuranium octoxide (U308); and US$500,000 in cash or shares upon completion of a Definitive Feasibility Study with Bradda Head’s decision to build an operating uranium mine.
Shares issued for the deferred consideration will be priced based on the 30-day volume-weighted average price.
Bradda Head will also pay Zeus a US$120,000 exclusivity fee to cover upcoming licence rents payable before completion.
The exclusivity fee will be immediately repayable if the acquisition has not been completed by 15 October 2026.
Bradda Head Executive Chair Ian Stalker says the transaction represents the company’s “logical next step” towards becoming a broader critical minerals company.
“Uranium sits alongside lithium as a vital building block of the clean energy future and adds to our efforts to strengthen and secure supply chains in the West,” Stalker says.
“By bringing in the Tanzanian licences we secure a solid, drill-ready project at limited upfront cost, with the majority of the consideration dependent on future project success.
“The acquisition sits comfortably alongside our established US lithium assets rather than overlapping them, giving us wider commodity and geographic reach, while our Arizona flagship Whistlejacket project continues to drive near-term progress.”
Sales, sales, sales
Lion Energy (ASX:LIO) has completed the sale of its 2.5% indirect interest in the Seram PSC to Vista Energy, following approval from the Indonesian Government.
The company received consideration of $1.2 million from the sale, including a $600,000 deposit.
The sale completes Lion’s exit from this non-core minority interest and firms funding for its share of the initial drilling operations at Bula Karang-1, where mobilisation is imminent.
Meanwhile, Nelson Resources’ (ASX:NES), through its wholly owned exploration subsidiary 79 Exploration, has entered binding agreements to divest its two non-core Western Australian projects: Woodline and Fortnum.
The consideration totals $1 million, including $600,000 in cash split across the completion date, two months after the completion date, and upon the granting of an extension to the term of E28/2633.
A further $400,000 in deferred cash payments is tied to establishing inferred resources of at least 75,000 ounces and 150,000 ounces of gold on the tenement.
Non-Executive Chairman Gernot Abl says these two projects are “no longer core to Nelson’s strategy”.
“These sales crystallise value from non-core ground, bring cash onto the balance sheet and, at Woodline, keep the company exposed to exploration success through the resource milestones,” Abl says.
“That lets us put our time and capital into Gold Point and the rest of the portfolio.”
Deals wrapped up
In broader industry news, Albright Metals (ASX:ABR) elected to sell its mineral rights regarding the Australian Vanadium Project at Gabanintha in WA to Australian Vanadium (ASX:AVL) on Thursday 17 September, terminating a 2017 sale agreement.
Under the terms of the transaction, Albright Metals will receive a total consideration of $1.75 million, comprising $500,000 in cash and $1.25 million in Australian Vanadium shares, as reported.
Meanwhile, First Au (ASX:FAU) entered a takeover implementation deed to acquire Javelin Minerals (ASX:JAV) in a deal that values Javelin at $46.5 million.
First Au will offer 11.7647 new shares for each Javelin share, equivalent to 0.5882 First Au shares following the company’s proposed 20-for-one capital consolidation.
Finally, Auric Mining (ASX:AWJ) acquired a package of processing infrastructure for $1.2 million midway through last week to advance its Burbanks gold processing facility in WA.
The acquisition of this processing infrastructure package is intended to maintain the study development timeline for re-establishing the processing plant. The plant is expected to be completed in Q1 2028.
As reported, the front-end fixed plant infrastructure supports an initial processing capacity of 600,000 tonnes per annum for the Burbanks carbon-in-leach plant design, while also allowing a future expansion of up to 1.2 million tonnes per annum.
Write to Maddison Elliott at Mining.com.au
Main Image: Bradda Head Lithium
