Future Battery Minerals scores $10m for Nepean Nickel project sale
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Future Battery Minerals’ 80% owned subsidiary Eastern Coolgardie Goldfields (ECG) has sold the Nepean Nickel project for a tidy $10m in cash.
The deal covers the NNP ‘nickel’ tenements M15/709, M15/1809 and P15/5750, including mining information and plant and equipment located on the sale tenements, with the company receiving $8m for its share of the sale.
The remaining 20% of the project is held by Goldfellas – a wholly owned subsidiary of Lodestar Minerals (ASX:LSR).
Notably, the sale tenements do not comprise any of the tenements which either host, or immediately surround, the 80% owned Kangaroo Hills Lithium Project (KHLP) in WA which has returned near surface intersections including 29m at 1.36% Li20 and 27m at 1.32% Li20.
Future Battery Minerals (ASX:FBM) says the transaction will strengthen its cash reserves and will support funding of exploration at its 2 key lithium projects in Kangaroo Hills and Nevada Lithium in the USA.
“As a result of the new exploration focus on the company’s two exciting lithium discoveries, we have been looking at rationalising the company’s portfolio which has resulted in the execution of a sale of the Nepean Nickel Project,” executive chairman Mike Edwards said.
“The board believes that the timing is right and the sale proceeds will strengthen the company’s cash reserves to progress our strategic lithium exploration projects, comprising the high-grade hard rock 80% owned Kangaroo Hills Lithium Project (KHLP) and large-scale sedimentary potential of our and Nevada Lithium Project (NLP).”
The sale settlement terms comprise a $0.1 million cash deposit (already received) and the payment of $2.7 million in cash upon completion, with the balance of $7.2 million in cash payable in stages over the next 24 months.
This article was developed in collaboration with Future Battery Minerals Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.