Ragnar hands over subsidiary to BHP in $9.8 million deal

Ragnar Metals (ASX:RAG) has officially sold its wholly owned subsidiary to a BHP Group (ASX:BHP) subsidiary, BHP Metals Exploration, in a $9.8 million deal. 

Ragnar, which has a $10.90 million market capitalisation, says the assets held by its subsidiary, Ragnar Metals Sweden AB, include exploration licences over the Tullsta Nickel Project and the Gaddebo Project in Sweden, as well as about $300,000 in cash. 

As part of the deal, Ragnar has been granted a net smelter return royalty of 1% payable upon the start of commercial production. BHP may buy out the royalty for a further $10 million.

Ragnar notes it will now continue to focus on its portfolio of exploration assets in Sweden, including its lithium projects at Hälleberget and Bergom and rare earth element (REE) exploration projects at Gruvhagen and Olserum North. 

This sale follows the company’s acquisition of 4 exploration licences in Sweden from Pallas Metals, a subsidiary of Canadian explorer Pallas Minerals, as reported on 12 October 2023.

These licences cover about 3,600 hectares in Ӧrnsköldsvik Municipality and include the Orrvik Lithium Project, which is considered ‘highly prospective’ for spodumene-bearing lithium-caesium-tantalum (LCT)-pegmatite-type lithium deposits. 

Ragnar Metals assets in Sweden are also considered prospective for nickel, copper, and gold mineralisation. 

The company had $196,000 cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report, though this does not account for funds received under a $1.89 million entitlement issue completed in July.

Write to Adam Drought at Mining.com.au

Images: Ragnar Metals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.