Firetail Resources (ASX:FTL) has entered into a binding agreement with Spartan Resources (ASX:SPR), which will re-acquire the lithium rights over certain tenements across Western Australia.
Spartan will purchase the lithium rights over the Yalgoo, Egerton, and Dalgaranga projects for $275,000 cash.
Firetail, which has a market capitalisation of $24.86 million, says the transaction streamlines its portfolio consistent with the company’s core focus on advancing the Skyline Copper Project in Canada.
As such, the company is continuing to evaluate opportunities to monetise the balance of its Australian portfolio, which includes the Paterson Copper-Gold-Uranium Project and the Mt Slopeway Nickel-Cobalt Project.
Managing Director Glenn Poole says this transaction crystallises the value from the first of the company’s non-core Western Australian assets.
“As well as realising $275,000 in cash, which will strengthen our funding position, this is a first step towards streamlining and simplifying our portfolio and positioning the company for long-term growth,” Poole says.
“We have prepared data rooms for the Paterson Copper-Gold-Uranium Project and Mt Slopeway Nickel-Cobalt Project and discussions are progressing with interested parties.”
Firetail Resources is an Australia-based copper explorer focused on its Skyline and Picha projects in Canada and Peru.
The Skyline Project, located in Newfoundland, historically produced 100,000 tonnes grading between 3% and 12% copper, 7% zinc, and 1 to 3 ounces per tonne silver.
The Picha Project, covering 220km2, is a lightly explored copper-silver asset which has a one-off, non-dilutive grant of up to US$500,000 from BHP’s (ASX:BHP) Xplor Program.
Write to Aaliyah Rogan at Mining.com.au
Images: Spartan Resources
