Empire Metals (AIM:EEE) has entered into a conditional sale and purchase agreement for its 75% interest in the Eclipse mining lease non-core gold assets in Western Australia.
As part of the sale, Empire Metals will receive $750,000 cash from a Western Australian mining services company operating in the Kalgoorlie region.
The deal includes a three-month exclusivity and due diligence period, during which the proposed purchaser will complete technical and commercial due diligence on the project.
During the exclusivity period, the purchaser may conduct a small reverse circulation drilling program.
Managing Director Shaun Bunn says this sale represents a further step in the company’s strategy to streamline its portfolio and focus management attention and capital on advancing the Pitfield Project in Western Australia.
“Eclipse is a non-core asset for Empire, and this transaction provides an opportunity to unlock value while reducing ongoing holding and resourcing costs,” Bunn says.
A program of works has been submitted to the Department of Mines, Petroleum and Exploration to support the small drilling program, which will be funded through the purchaser.
Subject to completing due diligence, the transaction is expected to occur in early April 2026.
Empire Metals is continuing to review options for other non-core assets, consistent with its strategy to expedite development activities at the Pitfield Project.
Pitfield is an emerging titanium project which has a 2.2 billion tonne resource at 5.1% for 113 million tonnes of contained titanium dioxide.
As previously reported, the company said the maiden resource makes Pitfield among the “largest and highest grade” titanium resources globally.
Speaking to Mining.com.au on the sidelines of the International Mining and Resources Conference (IMARC) in Sydney in November 2022, Managing Director Shaun Bunn, who is based in Perth, said the company has a considerable presence in Western Australia and Victoria.
“The new proposition for our shareholders now is building this substantial exploration portfolio in Australia that is going to be significant and we hope to be a copper-gold producer in the future.”
Empire Metals’ history started out exploring in the Austrian alps and for various reasons then moved its focus to a copper project in Georgia. While the company was focused on copper exploration in Georgia, it encountered difficulties with its then partners and ultimately began its focus in Australia.
“It was decided that what ended up becoming Empire Metals got out of Georgia and sold its share to our then Russian partner and a decision was made to look at assets in Australia as the country is a safe jurisdiction and well-regulated,” Bunns explained.
“All the risks are manageable here so as a junior, all we’re left with are just the usual exploration risks faced by all companies.”
Empire Metals is an AIM and OTC-traded explorer and resource developer with a primary focus on titanium in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Empire Metals
