Golden State Mining has sharpened its focus on lithium exploration to help fuel the battery metals market by divesting a gold project at Cue.

Golden State (ASX:GSM) will sell subsidiary Cue Consolidated Mining to privately-held Rock Solid Pty Ltd in exchange for $200,000 cash, a $15 per ounce royalty payable on the first 60,000oz of any gold produced at Cue, a $5/oz royalty on all subsequent gold produced and a 2% net smelter return royalty on all minerals outside of gold.

The divestment comes hot on the heels of GSM’s sale of two tenements at Cue to Victory Metals (ASX:VTM) late last month.

According to GSM MD Mike Moore, the move has been taken with a view to honing in on the company’s lithium exploration efforts at the exciting Yule and Paynes Find project where work is ongoing, while maintaining exposure to future success at Cue.

“The consideration mix of this transaction provides GSM with exposure to future success by Rock Solid as it progresses its gold mining, processing and exploration plans at Cue,” he said.

“The transaction allows GSM to continue to focus on its lithium exploration activities at its 100% owned Yule project in the Mallina Basin as well as the 100% owned Paynes Find lithium project where recent results delivered a number of high priority lithium targets to follow up in 2023.”

Lithium calling

In an environment where lithium is in high demand, Golden State has prioritised exploration for the key battery metal component at the flagship Yule project in the Pilbara and the more recently pegged Paynes Find project.

Highly encouraging lithium anomalies were detected at Paynes Find in March as the company geared up for the field season. Assay results from an infill sampling campaign are expected early in May, ahead of drilling in July.

The company recently published a video from Paynes Find highlighting its work on the ground. The video can be watched at the link below.

Golden State has also completed air core gold drilling over a new tenement at its Four Mile Well project.

The results of that work are expected soon.

This article was developed in collaboration with Golden State Mining, 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.

Featured Companies

You might be interested in