ASX-listed Trek Metals on Monday announced the proposed acquisition of the advanced South Woodie Woodie manganese project in the Pilbara, accelerating its battery metals strategy.
Trek has entered into a binding scheme implementation agreement under which it will acquire the shares of unlisted public company Edge Minerals in a transaction valued at about A$4-million.
The company has hailed the acquisition as “transformational”, giving the company an opportunity to pursue the development of South Woodie Woodie – a project comprising seven granted exploration licences, one pending exploration licence and one retention licence.
South Woodie Woodie has an inferred mineral resource estimate of 11.3-million tonnes, grading 15% manganese for the Contact and Contact North deposits, with immediate drill targets for both resource extensions and new discoveries.
“High-purity manganese is expected to see strong demand growth over the coming years as an increasingly desirable component of battery cathode composition. The raw material is significantly less expensive than alternative materials – such as cobalt and nickel – while also offering batteries with reduced charging time and enhanced safety performance,” said CEO Derek Marshall.
Directors Tony Leibowitz, Neil Biddle and John Young are directors of both companies and recommend shareholders vote in favour of the scheme.
Leibowitz, Biddle and Young played a formative role at Pilbara Minerals during the discovery and development of the Pilgangoora lithium/tantalum project. Marshall noted that they have extensive experience and contacts in commercialising battery materials projects.
The South Woodie Woodie project will be renamed Hendeka project following the implementation of the scheme, currently targeted for October.