Broken promises as Canadian explorer bails on Impact JV
Mining & Resources
Impact Minerals’s palladium joint venture at Broken Hill is over, after its Canadian partner cited “recent market conditions” and quit.
Bluebird Battery Metals called of the $5.9 million exploration agreement but didn’t expand on what the ‘market conditions’ might be.
Under the terms of the July agreement, Bluebird could earn up to 75 per cent in Broken Hill project by paying cash and shares, and by contributing to exploration costs of about $6 million.
The deal was made when Bluebird shares were trading for CAD 50c. In late October they reach a low of CAD 20c before recovering to CAD 24c.
The Impact share price, which has traded between 1.1c and 3.4c over the past year, is currently steady at 1.2c.
“This now gives Impact the opportunity to review its plans for the project at a time of record prices for palladium, which have moved from US$500 per ounce to US$1,100 per ounce over the past five years,” the company told investors.
Impact had $2.7 million in cash at the end of September.
Stockhead has contacted Impact for further comment.