Trek Metals (ASX:TKM) has signed a binding option and acquisition agreement with US-based Advanced Energy Fuels, to divest the Hendeka Manganese Project in the Pilbara region of Western Australia.
Advanced Energy can acquire the project as part of a proposed US listing, and by making certain payments, including sole funding $2 million of exploration expenditure.
Under the agreement, Advanced Energy will pay an option fee of $50,000 for an exclusive option to acquire the project. To date, $25,000 has been received.
If the company exercises the option, it will acquire Trek Metals’ subsidiaries Edge Minerals and Bellpiper, which holds the tenements that make up the project.
Advanced Energy will pay $450,000 on the proposed listing of Advanced Energy on or before 30 September 2025.
CEO Derek Marshall says the project offers significant optionality on the resurgence of the manganese sector, following recent well-publicised global supply issues.
“However, it is a non-core project for Trek given our strategic focus on the Christmas Creek Project, where we have a major gold drilling program underway, and our exciting McEwen Hills Niobium Project,” Marshall says.
“The deal is structured in a way that will give Trek significant exposure to future upside from the exploration and development of Hendeka via a 20% shareholding.
“We are excited about our current drilling program at the Christmas Creek Project, which is thought to host a potential extension of the prolific Granites-Tanami Orogen, with metasediments in the area showing a correlation to the geological sequences that host Newmont’s (ASX:NEM) globally significant Tanami Gold Mine.”
Marshall adds that the company is following up several high priority targets that Newmont generated, via additional surface geochemistry and drilling.
Advanced Energy Fuels is a private US company leveraging the transition to clean energy through the development of critical minerals projects in Australia and the US. The company is also focused on US battery supply chains and is planning to list within the next 12 months.
Trek Metals is an explorer focused on making discoveries in several locations, with the aim of unlocking hidden value in largely under-explored regions.
Write to Aaliyah Rogan at Mining.com.au
Images: Trek Metals
