Future Battery Minerals (ASX:FBM) and Lodestar (ASX:LSR) have announced they will be selling their respective interests in the Nepean Nickel Joint Venture (JV) Project in Western Australia.
The ASX-listed companies will handball the project to Rocktivity Nepean in return for $10 million in cash, with the sale strengthening both companies’ cash reserves and supporting funding for exploration at other projects.
The Nepean Project is 80% owned by Future Battery, meaning the company will receive $8 million in net. Lodestar holds the remaining 20% of the total issued share capital of the seller and will therefore secure $2 million from the sale.
“The sale of the NNP will provide a welcome cash injection totalling $2 million to Lodestar that will largely be devoted towards the exploration of our Earaheedy Project”
Commenting on the transaction, Lodestar Managing Director Ed Turner says: “The sale of the NNP will provide a welcome cash injection totalling $2 million to Lodestar that will largely be devoted towards the exploration of our Earaheedy Project.
The Earaheedy Basin has already proven to host Rumble Resource’s tier-one Zn-Pb-Ag Chinook Deposit and has the potential for more discoveries within our 1,334km-square land package.
The Earaheedy will be the primary focus of our exploration efforts over the coming years, as well as our commitment to the Kangaroo Hills JV Project with Future Battery Minerals, who have recently made a significant lithium discovery.”
Also commenting on the transaction, Future Battery Minerals Executive Chairman Mike Edwards says: “As a result of the new exploration focus on the company’s 2 exciting lithium discoveries, we have been looking at rationalising the company’s portfolio, which has resulted in the execution of a sale of the Nepean Nickel Project.
The board believes that the timing is right and the sale proceeds will strengthen the company’s cash reserves to progress our strategic lithium exploration projects, comprising the high-grade hard rock 80% owned Kangaroo Hills Lithium Project and large-scale sedimentary potential of our and Nevada Lithium Project.”
Lodestar Minerals is an active Western Australian base metals, lithium, and gold explorer. The company’s wholly owned projects include the Earaheedy, Jubilee Well and Coolgardie West Projects, as well as the Kangaroo Hills JV Project with Future Battery Minerals.
Future Battery Minerals is an ASX-listed exploration company focused on exploring lithium, nickel, and copper in stable pro-mining jurisdictions.
Images: Future Battery Minerals Ltd
