Ragnar Metals (ASX:RAG) is continuing to progress its battery minerals campaign in Sweden, with four new projects ready to be explored following the $9.8 million sale of its nickel interests in the country over the June quarter.
During the quarter, Ragnar was granted tenure over 2 new lithium projects — the Hӓlleberget and Bergom projects.
The project areas are considered ‘highly prospective’ for lithium pegmatite deposits since the district represents the western extent of the same belt that contains the ‘largest’ lithium deposits in Scandinavia, the Kaustinen Lithium province in Finland.
In addition, Ragnar identified and secured 2 new rare earth element (REE) licences encompassing 37.3km-square of tenure. The company says this area is ‘highly prospective’ for heavy rare earth element (HREE) mineralisation and NdPr metals.
The REE projects are named the Olserum North (HREE) Project and the Gruvhagen NdPr Project. Both projects are located in the southwestern Fennoscandian Province, renowned for REE deposits, including Sweden’s ‘largest’ REE deposit, Norma Karr.
Following the end of the quarter, Ragnar received assay results from rock chip samples from 2 prospects within the Olserum HREE Project, producing up to 93% heavy rare earth oxide (HREO) at the Flaken prospect and 86% HREO at the Hylleled prospect.
Meanwhile, also during the quarter, Ragnar entered into a conditional sale and purchase agreement to dispose of its wholly owned subsidiary, Ragnar Metals Sweden AB, to BHP Metals Exploration, a subsidiary of BHP Group (ASX:BHP), for $9.8 million.
The sale includes tenements and exploration licences over the Tullsta Nickel Project in Sweden and is expected to be completed by 30 September 2023.
Deferred consideration in the form of a 1% net smelter return royalty will be payable to Ragnar upon the beginning of commercial production from the assets. BHP may buy out the royalty for an additional $10 million.
Commenting on the past quarter, Ragnar Metals Executive Director Eddie King says: “It has been a busy quarter for Ragnar Metals, with the conditional divestment of all the company’s nickel interests to BHP Metals Exploration for cash consideration of $9.8 million, with further upside in the royalty.
This is a significant outcome for a junior explorer and underpins the exploration work done by our in-house geological team and our geological consultants in-country.
“The sale of our nickel interests allows the company to continue its strategy of exploring battery minerals”
The sale of our nickel interests allows the company to continue its strategy of exploring battery minerals, backed by a strong geological team in 1 of the best exploration jurisdictions in the world with a significant mineral endowment.”
Ragnar adds that its technical team is considering satellite imagery options on the Kenya Gold and Leeds Gold projects, with the aim of defining alterations and potential new targets. This work is in progress and ongoing.
Ragnar Metals is a nickel, copper, gold, and rare earth-focused company, with projects across Sweden and Australia.
As of 30 June 2023, the company had $196,000 cash and cash equivalents at hand, according to its latest quarterly report. However, this amount does not take into consideration the incoming $9.8 million from the nickel assets sale nor the $1.023 million raised by Ragnar through an entitlement offer in July.
Write to Aaliyah Rogan at Mining.com.au
Images: Ragnar Metals Ltd