Manganese developer Firebird Metals (ASX:FRB) has divested the Ashburton prospect in a sale to critical minerals explorer Reach Resources (ASX:RR1).
Consideration received from the sale will be the equivalent number of Reach shares calculated by dividing $110,000 by a deemed issue price using the 5-day volume weighted average price of Reach shares for the 5 trading days preceding completion.
The sale of Ashburton, which Firebird says is a non-core asset, reflects the company’s dedicated focus to streamlining all efforts and capital into the continued development of its flagship Oakover Project and execution of the recently announced updated corporate strategy.
The strategy has been established to develop Firebird into a near-term producer of battery-grade MnSO4 (high-purity manganese sulphate), which is a key cathode material in LMFP (Lithium, Manganese, Iron and Phosphate) batteries for electric vehicles.
Reach Resources says the binding tenement sale agreement consolidates ground already held by Reach in an area ‘highly prospective’ for manganese and rare earths.
Completion of the acquisition is subject to the transfer of rights over the tenement and relevant information, including the issue of freely tradeable ordinary shares in RR1, to Firebird Metals or their nominee/s.
Addressing the acquisition, Reach CEO Jeremy Bower says: “Whilst primarily used in the steel industry as an alloying agent to improve hardness, strength and resistance to corrosion, the electric vehicle revolution is here and manganese is a key component in the production of lithium-ion batteries.
The company remains entirely focused on our Morrissey Hill lithium project, but it’s important that we continue to consolidate our tenure in highly prospective areas, with a focus on the EV market. This low cost acquisition is right in between some big players in Hastings and FMG and we are very interested in manganese generally and the role it will play over the coming years.”
“This low cost acquisition is right in between some big players in Hastings and FMG and we are very interested in manganese generally and the role it will play over the coming years“
Manganese is recognised as a critical mineral by the Office of the Chief Economist (Australian Government Department of Industry, Innovation and Science). Further, a White House document (June 2021) states that manganese use in battery cathodes may result in the metals preferred element emergence in next generation battery cells, due to its ‘relative safety’ and ‘having by far the most stability’.
Firebird Metals is a manganese developer focused on its advanced, 100% owned project portfolio, located in the renowned East Pilbara manganese province of Western Australia.
The portfolio boasts a total Resource of 234Mt, with exciting exploration and development growth upside. The company’s flagship Oakover Project holds a Mineral Resource Estimate of 176.7Mt at 10% Mn, with 105.8Mt in an indicated category and 70.9Mt of inferred Resource.
A Scoping Study completed by Firebird at Oakover highlighted the outstanding long-term potential of the Project as a manganese operation.
This potential was further strengthened through production of >99.8% purity manganese sulphate monohydrate crystal, which confirmed Oakover manganese ore can be processed into battery grade HPMSM.
The company’s other key projects are Hill 616 and Wandanya which provide Firebird with compelling growth opportunities.
Write to Adam Orlando at Mining.com.au
Images: Reach Resources
