PERTH (miningweekly.com) – Explorer Bryah Resources has signed an option agreement with Mining Green Metals Limited (MGM) over the potential sale of a 51% interest in its Lake Johnston lithium/nickel project, in Western Australia.
The Lake Johnston project consists of eight exploration licence applications covering a total area of 690 km2, and also includes ground to the immediate west and north of Poseidon Nickel’s Lake Johnston project encompassing the Maggie Hays/Emily Ann mine and associated processing plant, which is currently under care and maintenance.
The Emily Ann mine historically produced 46 000 t of nickel with a resource grade averaging 4.1% nickel.
“The Lake Johnston tenements are prospective for battery metals lithium and nickel and the Bryah team has completed reconnaissance to follow up on existing data and geological mapping,” Bryah CEO Ashley Jones said.
“The divestment allows the company to focus on its near-term production assets; the Bryah Basin manganese joint venture with OM Holdings, and the Gabanintha copper/nickel/cobalt/base metal project. It is also continuing to explore the highly prospective VMS copper/gold Windalah project.
"The Lake Johnston assets deserve a dedicated exploration effort and team, which will be able to be provided by inclusion in a company with the technical, human and financial resources to advance these exciting assets. Bryah shareholders will retain significant leverage to exploration of these assets and the other exploration assets in the new initial public offering (IPO).”
To exercise the option, MGM will issue five-million shares to Bryah, with Bryah retaining a 49% interest in the project in an unincorporated joint venture. A potential further five-million fully paid ordinary shares will be issued by MGM for the remaining 49% interest.
The completion of the acquisition is dependent on MGM undertaking due diligence, the tenements being granted and MGM completing an IPO on the ASX. MGM will pay Bryah A$25 000 as an option fee, with the option exercise period of 12 months. A second option period of 12 months relates to the acquisition of Bryah’s 49% interest.