Why Did NickelSearch Acquire These Lithium Tenements in Western Australia?
Nickelsearch Limited
1 1

Why Did NickelSearch Acquire These Lithium Tenements in Western Australia?

NickelSearch Limited (ASX: NIS) has embarked on a significant strategic expansion of its lithium tenure with the acquisition of a substantial land package in the highly prospective Ravensthorpe district of Western Australia. This move bolsters the company's presence in proximity to the operational Mt Cattlin lithium mine, further solidifying its position in the lithium sector.

A Sizeable Landholding

The acquisition includes four Exploration Licenses (Es) - E 74/719, E 74/744, E 74/743, E 74/762 - and one Prospecting License (P) 74/387, collectively covering an impressive 81. 8 square kilometers of landholding. Additionally, the company acquired E 74/777, a 5. 3 square kilometer tenement adjoining its Carlingup Project. This strategic expansion has augmented NickelSearch's Ravensthorpe district landholding to a total of 194.

Story Continues.. after this ad because we need some dollarydoos

5 square kilometers. Crucially, 148. 7 square kilometers of this land package grant the company mineral rights, including lithium.

Strategic Location

These newly acquired tenements strategically position NickelSearch, particularly in proximity to the Mt Cattlin lithium mine, which is owned by Allkem Limited. The acquisition also extends structures northeast of the Mt Cattlin Mine, thereby enhancing the potential for lithium exploration in the region. Bulletin Resources Ltd, another notable player in the area, further bolsters the attractiveness of this lithium target pipeline.

Unexplored Lithium Potential

Historical exploration activities within the newly acquired tenements have predominantly focused on nickel. However, NickelSearch intends to shift the focus towards lithium exploration. Plans include comprehensive mapping, soil sampling, and rock-chip sampling initiatives with the aim of defining drill-ready targets in the first half of CY2024.

NickelSearch's Outlook

NickelSearch Managing Director, Nicole Duncan, expressed optimism about the company's strategic move. The recent capital raising and option exercising, which raised approximately $3. 6 million before costs, have positioned NickelSearch favorably to execute these ambitious exploration programs.

Acquisition Details

NickelSearch has entered into a Binding Agreement to acquire 100% of the issued capital of Resource Standard Pty Ltd (Resource Standard), which holds effective ownership of several of the newly acquired tenements. The terms of the agreement include an upfront share consideration of $575,000 in NIS shares issued at settlement. Furthermore, deferred share consideration milestones, subject to shareholder approval, involve payments based on specific exploration achievements.

NickelSearch has also entered into an Agreement with Mining Equities Pty Ltd (Mining Equities) to acquire a 100% interest in E 74/762 and P 74/387, with transfer of E 74/762 contingent on Ministerial consent. The terms of this agreement encompass an upfront share consideration of $600,000 in NIS shares issued at settlement, with additional provisions for a Net Smelter Royalty (NSR) based on lithium production, which NickelSearch may reduce under certain conditions.

These strategic acquisitions signify NickelSearch's concerted efforts to bolster its lithium exploration endeavors and enhance its presence in the thriving lithium sector. As exploration activities unfold in these newly acquired tenements, the company aims to unlock the latent lithium potential, potentially adding significant value to its portfolio.

Promote your business on our growing investor platform: Advertise With Us

Like

Reply 110 Share