11/07/2018 - 13:57

Impact signs $6m JV

11/07/2018 - 13:57

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Canada-listed BlueBird Battery Metals has entered into an agreement to farm-in to Impact Minerals’ Broken Hill project in NSW, in a cash-and-scrip deal worth about $5.5 million.

Impact signs $6m JV
The Broken Hill project is prospective for nickel.

Canada-listed BlueBird Battery Metals has entered into an agreement to farm-in to Impact Minerals’ Broken Hill project in NSW, in a cash-and-scrip deal worth about $5.5 million.

Under the joint venture agreement, BlueBird can earn a 75 per cent stake in the project by spending $2.3 million on exploration work over the next three years.

The agreement also includes cash payment of $150,000 and the issue of 5.3 million BlueBird shares to Impact.

BlueBird will also issue shares at the end of each of the first three years totalling about $500,000.

A number of bonus shares will also be issued to Impact subject to specified price targets being achieved.  

The Broken Hill project is prospective for nickel, copper, gold, silver and platinum group elements.

BlueBird is focused on battery metals projects in Canada and Australia.

The company acquired the Canegrass project, near Mount Magnet, earlier this year. 

Impact managing director Mike Jones said the company was pleased to partner with BlueBird.

“The management of BlueBird have a strong track record in exploration discovery and resource development and they are committed to exploration success on their Australian portfolio,” he said.

“They have chosen to focus on the Broken Hill project because of its prospectivity for a wide range of metals that will form a critical part of the emerging market for batteries and renewable energy sources and we look forward to working with them on their exploration program.

“This will include early drilling on the targets Impact has already identified.”

 Shares in Impact were flat at 1.3 cents each at 3pm AEDT.

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