Trek has entered into a Scheme Implementation Agreement with unlisted public company Edge Minerals to acquire the South Woodie Manganese Project in WA’s Pilbara region.

The South Woodie Project hosts a JORC inferred resource for the Contact and Contact North deposits of 11.3Mt grading 15% manganese.

Historical beneficiation test work has confirmed the ability to upgrade the manganese concentrate to up to 44.6% manganese, with Trek to undertake further test work to determine the potential to produce battery-grade manganese products.

South Woodie represents an advanced, high-quality asset and Trek Metals (ASX:TKM) says “outstanding” exploration potential exists both in the existing resource areas at South Woodie Woodie and within the broader exploration tenement package.

Leveraged to rapidly expanding battery materials sector

Commenting on the landmark acquisition, TKM CEO Derek Marshall says South Woodie offers an exciting opportunity for Trek to target the rapidly expanding battery materials sector.

“Importantly, South Woodie Woodie already has an existing mineral resource, positive preliminary metallurgy and all required access agreements in place,” he says.

“This will enable Trek to move ahead quickly with our initial work programs focused on expanding the existing resource and assessing the potential to produce battery-grade manganese products.

“High- purity manganese is expected to see strong demand growth over the coming years as an increasingly desirable component of battery cathode composition.

“The raw material is significantly less expensive to mine and produce than alternative cathode materials – such as cobalt and nickel – while also offering batteries with reduced charging time and enhanced safety performance.”

Board focused on battery metals

Trek’s board has a strong track-record of successfully developing and commercialising battery materials projects.

Marshall said Trek directors Tony Leibowitz, Neil Biddle and John Young all played a formative role at Pilbara Minerals (ASX:PLS) during the discovery and development of the world-class Pilgangoora Lithium-Tantalum Project and have extensive experience and contacts in commercialising battery materials projects.

Renamed Hendeka Project

South Woodie, which comprises seven granted exploration licences and one pending exploration licence and one retention licence will be renamed the Hendeka Project following implementation of the Scheme.

The project provides Trek with exposure to a metal with strong supply- demand fundamentals and a robust outlook given its use in steel manufacturing (which currently accounts for 85-90% of global consumption) and growing consumption by the lithium-ion battery sector.

What’s next?

Total consideration for the project acquisition is around $4mn with Edge shareholders to receive 2.12 new Trek shares for each Edge share held.

Following completion of the acquisition, Trek plans to undertake Resource extension and exploration drilling to expand and upgrade the existing resource.

Drilling is expected to begin in the December 2022 quarter, subject to drill rig availability.

Metallurgical test work will be undertaken to determine the characteristics of the ore and the potential to produce battery-grade manganese products, including high- purity manganese sulphate monohydrate, which is seeing growing demand for battery cathode manufacturing.

Existing Heritage and Land Access Agreements are in place, allowing for immediate access to Begin on-ground activities.




This article was developed in collaboration with Trek Metals, 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