Summit gains exposure to lithium-REE discoveries with non-core project sale
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Summit will sell non-core tenement E09/2435 to Odessa Minerals for 6m ODE shares priced at 1.8c each, 2m options, and a 1.5% net smelter royalty on any future production.
The sale aligns with Summit Minerals’ (ASX:SUM) strategy to fund and grow its portfolio and advance its business by monetising non-core mineral exploration assets.
This tenement becomes part of Odessa’s Lyndon REE/lithium project in the Gascoyne region of WA, turning it into one continuous and contiguous tenement package covering 811km2.
“The Directors consider that the sale of the Lyndon Project is in the Company’s best interests and will allow the Company to concentrate on alternative assets to increase value for the benefit of all shareholders whilst remaining exposed to any potential discovery Odessa may make on the broader Lyndon REE/Lithium Project,” Summit says.
Summit is hitting 2023 at pace.
Drilling is now underway at the Stallion project, east of Kalgoorlie, where historical high-grade hits suggest “the essential ingredients for ion-adsorption rare earths mineralisation are present”.
“We are very pleased to be drilling at Stallion, where the essential ingredients for IAD REE mineralisation are present, including an REE-enriched granite and a deeply weathered clay-rich regolith,” SUM managing director Jonathan King says.
“Validation of the historical REE results, complemented by the analysis of the additional 13 oxides, will define the project’s prospectivity and scale and should provide the company with early momentum moving into the New Year.
“We look forward to updating shareholders with the results as they are received in early 2023.”
Summit also has put boots on the ground at its Windfall project in New South Wales, with fieldwork aimed at confirming its antimony prospectivity.
Antimony is a silvery, brittle metalloid valued for its anti-corrosion properties which strengthen everything from nuclear energy facilities to batteries and wind turbines.
It is also used in the defence sector and in high tech devices like smartphones, semiconductors, cars and computers.
Summit adds that there is also growing awareness of its potential role in the next generation of large-capacity stationary batteries, which is supported by ongoing strength in the global antimony price.
“The historic Munga Creek mining centre is spread over 1.5km north to south and 900m east to west, with large gaps up to 300m between some of the 11 artisanal mines present,” King said.
“These areas have not been explored for decades, leaving swathes of untested opportunities between known antimony producing sites.
“We are excited to be on the ground and look forward to progressing these targets to drill-ready status in the first half of next year.”
This article was developed in collaboration with Summit, 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.