• NickelSearch has strategically expanded its landholding in the Ravensthorpe district, adding a combined 87.1km2 of ground to its portfolio
  • The acquisition covers four exploration licences and one prospecting licence
  • NIS plans to accelerate exploration across the new tenements in the first half of 2024

 

Special Report: NickelSearch has added four new exploration licences and one prospecting licence to its footprint WA’s Ravensthorpe district which now totals 194.5km2.

 

NickelSearch (ASX:NIS) has acquired four exploration licences (E74/719, E74/744, E74/743, E74/762) and one prospecting licence (P74/387) to its landholding in Ravensthorpe.

Combined, the licences cover 81.8km2 of ground prospective for lithium in close proximity to the Mt Cattlin lithium mine owned by Allkem (ASX:AKE) and to NIS’s flagship Carlingup project.

 


New acquisition tenements shown in relation to NIS existing tenure. Pic via NickelSearch

 

The explorer’s Ravensthorpe district landholding now totals 194.5 km2, of which 148.7 km2 is for all mineral rights including lithium, and the remaining 45.8 km2 is for nickel rights only.

NIS says the acquisition contains a continuation of structures northeast of the Mt Cattlin Mine and nearby to tenements held by Bulletin Resources (ASX:BNR), enhancing the potential of the lithium target pipeline.

 

Lithium success in ’24

“The strategic acquisition of these tenements in new areas prospective for lithium in proximity to the Mt Cattlin mine exposes NickelSearch to lithium exploration success in CY2024,” NIS managing director Nicole Duncan says.

“Following the recent capital raising and option exercising raising approximately $3.6 million before costs, we are well funded to execute our exploration programs.”

While historical exploration has primarily focused on nickel, NIS plans to accelerate lithium exploration programs including mapping, soil sampling and rock-chip sampling with the aim to define drill-ready targets in the first half of next year.

 

Acquisition terms

NIS has entered into a binding agreement to acquire 100% of the issued capital of Resource Standard, which has effective ownership of the tenements E74/743, E74/744, and E74/719.

Material terms of the agreement with Resource Standard are as follows:

  • Upfront share consideration: $575,000 in NIS shares issued at settlement, based on the 30-day VWAP in the shares in the lead up to the execution of the Term Sheet.
  • Deferred share consideration – Milestone 1: $125,000 in NIS shares issued at the 30-day VWAP upon the announcement of five (5) rock chip samples greater than 1% Li2O.
  • Deferred share consideration – Milestone 2: $125,000 in NIS shares issued at the 30-day VWAP upon the announcement of drill result of 10m @ 1.0% Li2O.
  • NSR Royalty: the Vendor’s nominee company is granted a 1.5% net smelter royalty (NSR) over lithium won from the tenements up to a limit of $10,000,000. NickelSearch may reduce the royalty to 0.75% by paying to the nominee company $2,500,000.

The deferred share consideration payments are subject to shareholder approval. If shareholder approval is not obtained or expires, NickelSearch will pay the cash amount in lieu of the shares. The Agreement otherwise contains terms and conditions customary for an agreement of this nature.

It has also entered into an agreement with Mining Equities to acquire 100% interest in E74/762 and P74/387.

Transfer of E74/762 is subject to ministerial consent, which will be sought immediately.

Material terms of the Mining Equities agreement are as follows:

  • Upfront share consideration: $600,000 in NIS shares issued at settlements based on the 30-day VWAP before the announcement of the execution of this agreement; and
  • NSR Royalty: Mining Equities are granted a 1.00% NSR royalty over lithium won from the tenements. NIS may reduce the royalty to 0.50% by paying Mining Equities $5 million.

The company plans to accelerate lithium exploration programs including mapping, soil sampling and rock-chip sampling with the aim to define drill-ready targets in H1 CY2024.

 

 

This article was developed in collaboration with NickelSearch, 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.

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