Mergers and acquisition (M&A) activity heated up on the Australian Securities Exchange (ASX) over the past week ending on 29 August, as mining companies accelerated efforts to acquire and offload assets, as well as forge new partnerships.
Lithium Plus Minerals’ (ASX:LPM) 44.7% owned subsidiary Moonlight Resources entered into an agreement to acquire the Clermont Gold Project in Queensland from Diatreme Resources (ASX:DRX).
Diatreme CEO Neil McIntyre says the Clermont Project is a non-core asset for the company as it remains focused on developing its silica asset portfolio currently transitioning through final permitting and approvals.
As part of the transaction, Moonlight will issue Diatreme $3.25 million worth of shares and performance rights under its initial public offering (IPO) prospectus and will pay $250,000 cash.
Post-IPO, Diatreme will be a substantial shareholder in Moonlight and is expected to hold an initial interest of between 17.1% and 19.9%.
The acquisition – subject to due diligence, receiving regulatory approvals, and Moonlight lodging its IPO prospectus – is a key step in establishing Moonlight as a focused gold and critical minerals explorer.
Moonlight will target mineral resource delineation from numerous drill-ready gold discoveries and an expansive pipeline of additional proximal gold and copper targets.
Reaching agreements
Cosmos Exploration’s (ASX:C1X) optioned entity EAU Lithium has executed a sale agreement with Vulcan Energy Resources (ASX:VUL) to acquire the A-DLE pilot plant in Germany.
The deal marks an “important” step for the company to advance the evaluation of sustainable direct lithium extraction technology on Bolivian brines.
Under the agreement, Cosmos will pay €1 million in two installments and is required to complete a $2 million capital raise. The transaction is expected to be completed on 31 October 2025.
Upon completion, EAU Lithium will have a fully constructed pilot-scale adsorption-based DLE plant, enabling it to conduct pilot testing of Bolivian brines in partnership with YLB and the Bolivian Government.
Expanding footprints
Arika Resources (ASX:ARI) is expanding its northeast Goldfields footprint via an acquisition of strategic gold tenements in Western Australia, from Iris Metals (ASX:IR1).
Under the binding agreement to acquire the 108km2 Kookynie Gold Project, Arika will pay $35,000 in reimbursement costs and a non-refundable $100,000 fee to Iris.
Arika, which has a market capitalisation of $35.32 million, will also issue 15 million shares and a further $100,000 cash 12 months after completing the deal.
Iris says the deal aligns with its strategy to focus on hard-rock lithium exploration in the US, where the company holds a suite of assets while concurrently assessing various opportunities in the critical mineral space.
The Kookynie Project offers compelling exploration upside including extensive historical workings and numerous historical drill intercepts. The project also links up a mineralised corridor immediately along strike from Genesis Minerals (ASX:GMD) Ulysses Gold Operation.
Write to Aaliyah Rogan at Mining.com.au
Images: Diatreme Resources, Vulcan Energy Resources, & Arika Resources
