Option agreement signed for Mining Green Metals to acquire a 51% interest in the Lake Johnston Lithium-Nickel project
Bryah Resources to sell 51% interest in Lake Johnston Lithium-Nickel Project. (Credit: swm/Freeimages)
Bryah Resources Limited (ASX: BYH, “the Company” or “BYH”) is pleased to advise that it has signed an option agreement with Mining Green Metals Limited (MGM) for MGM to acquire a 51% interest in the Lake Johnston Lithium-Nickel project located approximately 400km east of Perth and 200km southwest of Kalgoorlie in Western Australia.
CEO, Ashley Jones comments, “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. The divestment allows the Company to focus on its near-term production assets; the Bryah Basin Manganese JV with OM Holdings Limited, 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 IPO.”
The option agreement will provide the following benefits to BYH and its shareholders:
- 5,000,000 fully paid ordinary shares of MGM;
- Retaining a 49% interest in the project in an unincorporated joint venture; and
- A potential further 5,000,000 fully paid ordinary shares of 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 initial public offering on the ASX. MGM will pay BYH $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 BYH’s 49% interest.
The Lake Johnston Lithium-Nickel project consists of eight exploration licence applications covering a total area of 690km2. Bryah made applications over 5 tenements and purchased West Coast Minerals Pty Ltd, which had 3 tenements under application, for the consideration of $75,000 cash plus 2 million Bryah shares
The exploration ground extends to within 10 kilometres east of the world class Mount Holland Lithium mine and concentrator being developed under the Wesfarmers Limited/SQM Australia Pty Ltd joint venture. The Mount Holland Lithium project includes the Earl Grey Lithium deposit with a reported Mineral Resource of 189 million tonnes grading 1.5% Li2O, making it a globally significant high-grade hard rock lithium deposit.
The Lake Johnston Lithium-Nickel project also includes ground to the immediate west and north of Poseidon Nickel Limited’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 tonnes of nickel with a resource grade averaging 4.1% nickel.
Source: Company Press Release