Giga Metals (TSX-V:GIGA) intends to acquire full ownership of its Turnagain Project after Mitsubishi (TYO:8058) elected to sell its 15% joint venture interest back to the company.
The transaction follows Mitsubishi’s decision to exercise its put right under the Turnagain JV agreement dated 15 August 2022.
Giga will repurchase the approximate 15% interest for nominal consideration, with the deal expected to close on or around 12 October.
Kota Ikenishi, General Manager of the Battery Minerals Department at Mitsubishi, stresses that the decision “is not a reflection of Turnagain, nor of the dedication, commitment, and hard work demonstrated by the Giga team”.
“[The decision …] is the result of Mitsubishi’s broader portfolio review and assessment of the North American nickel and EV markets since investment,” Ikeneshi reveals.
CEO Scott Lendrum says the company has now shifted focus to copper exploration potential across 80% of the Turnagain ultramafic system, which remains unexplored or underexplored due to continued uncertainty in the nickel market.
“A multi-phase exploration program is currently underway, guided by Dr Stephen Beresford, with an emphasis on known copper mineralization and the significant potential of the Attic Zone,” Lendrum says.
Located in northern British Columbia, Canada, the Turnagain Project contains an undeveloped sulphide nickel and cobalt resource, with the complex also prospective for copper, platinum, and palladium mineralisation in the Attic Zone.
The acquisition provides Giga with complete control over the project as it pursues copper exploration opportunities while maintaining optionality on its established nickel and cobalt resource base.
Giga Metals is focused on its core asset, the Turnagain Project, which reportedly contains one of the few significant undeveloped sulphide nickel and cobalt resources in the world.
Write to Paula Fabe at Mining.com.au
Main image: Giga Metals
