Exploration company Alchemy Resources has announced the potential spin out of its noncore nickel/cobalt mineral rights, in New South Wales.
The ASX-listed firm on Thursday announced an option agreement with Ionick Metals, a subsidiary of Helix Resources, for the West Lynn tenements at the Lachlan project.
West Lynn is an advanced project located 10 km west of Nyngan and 40 km north of Ionick’s nickel mineral rights.
“When the opportunity arose to join with Ionick into what we consider to be a potentially significant critical metals exploration company in Australia, the rationale was compelling. We are delighted to have reached an agreement with Ionick that may see our nickel/cobalt minerals and alumina portfolio combined with their highly prospective tenement package located in a Tier 1 mining jurisdiction.
The potential spin-out will result in the establishment of Ionick as a well-funded base metals explorer and will provide our shareholders with ongoing exposure to these expanded assets and strategy,” said CEO James Wilson.
He added that the potential spin-out would allow Alchemy to focus on the ongoing development of its high-grade gold and base metals assets at Overflow and Yellow Mountain to the south.