Rapid Critical Metals (ASX:RCM) has signed a sale and purchase agreement to acquire a whole stake in the Webbs Consol Silver Project in northeast New South Wales from Lode Resources (ASX:LDR).
The company will pay $3 million and issue 115 million shares upon completion of the sale, with another $750,000 payment due 12 months on.
Lode will retain a 2% net smelter return royalty over products sourced from the project, which Rapid will be eligible to purchase back for a cash payment of $2 million.
Rapid Critical Metals Managing Director Byron Miles says the acquisition significantly increases the company’s scale whilst consolidating one of the highest-grade silver projects in Australia.
“We look forward to continuing the great work Lode has done, and commence further drilling to continue to add ounces to our overall silver resource holdings,” Miles says.
Lode Executive Chairman Andrew Van Heyst says the company is pleased to progress further towards the divestment of Webbs Consol.
“This transaction is a win-win for both companies,” Van Heyst says.
“We look forward to receiving the 115 million shares in Rapid upon transaction completion and becoming a material shareholder in Rapid with this incredible silver consolidation opportunity in the northeast of New South Wales.”
Lode intends to shift its focus to the Montezuma and Magwood assets, both within the New England Ford Belt of New South Wales, with two drilling programs currently underway focusing on the discovery of antimony and silver.
Cash received from this sale will go towards the ongoing drilling programs.
Lode expects to receive first assays from the Magwood Project within the next few weeks, as well as results from the Montezuma Project.
Rapid Critical Metals is a silver and gallium explorer focused on advancing high-grade projects in New South Wales and British Columbia.
Write to Maddison Elliott at Mining.com.au
Images: Rapid Critical Metals
