Rapid Critical Metals (ASX:RCM) has entered a binding agreement with Lode Resources (ASX:LDR) to fully acquire the Webbs Consol Silver Project in northeast New South Wales.
The package comprises tenements EL 8933 and EL 9454 for a total consideration of $3.75 million cash, for a $3 million payment on completion and a further $750,000 due 12 months after the completion date.
Rapid will issue 115 million shares to Lode under this agreement, which will be held in voluntary escrow for 12 months.
Lode will hold a 2% net smelter return royalty following the acquisition.
Along with the company’s Webbs and Conrad deposits, Rapid will now have a combined resource of around 67 million ounces of silver equivalent with a combined grade of around 400 grams per tonne silver equivalent.
Managing Director Byron Miles says the acquisition is a “pivotal step” in Rapid’s greater strategy to develop a silver-focused platform in New South Wales.
“This transaction not only secures a contiguous silver corridor with outstanding geological prospectivity, but also opens up exciting potential for new discoveries in an area that has seen limited systematic drilling,” Miles says.
“The exceptional high-grade hits already achieved at Webbs Consol underscore the quality of mineralisation and the upside ahead.”
In order to reach completion, both companies will be subject to customary due diligence and an execution of definitive transaction documentation. A general meeting will be held in October for Rapid shareholder approval.
Rapid Critical Metals is a silver and critical mineral explorer focused on developing its portfolio of assets in New South Wales and British Columbia.
Write to Maddison Elliott at Mining.com.au
Images: Rapid Critical Metals
