Metalicity Limited is now geared for exploration at its prospective new copper project tenements in the highly sought after Paterson region in WA, after netting nearly AUD$1.5m from the sale of non-core lithium and cobalt assets. The company’s Pilbara lithium project was sold to Chilean major SQM for AUD$1.35m and a royalty, whilst its Yerrida cobalt project was purchased by Great Western Exploration for $170,000 in cash and shares.
Base metals developer Metalicity Limited can now have a full exploration tilt at its prospective new copper project tenements in the sought after Paterson region of the east Pilbara in WA, after it netted nearly AUD$1.5m from the sale of non-core lithium and cobalt assets.
The company said this week it had divested its Pilbara lithium project tenements to Chilean heavyweight SQM for a tidy sum of about AUD$1.35m and it will retain a 1% net smelter royalty or “NSR” from any future production from the associated leases.
Metalicity has also signed a binding agreement with ASX listed Great Western Exploration for the 100% sale of its Yerrida cobalt project, located near Wiluna in the northern Goldfields region of WA.
The company will receive $50,000 in cash and $120,000 worth of Great Western shares at 0.6c per ordinary share.
Metalicity will still manage to preserve a significant interest in the battery metals sector by retaining a NSR from the Pilbara lithium project and an equity holding in Great Western, who is committed to its significant base metals holdings in the prospective Yerrida Basin, northwest of Wiluna.
The company has retained its 100% holding in tenements adjoining the Bald Hill lithium and tantalum mine near Kambalda in WA that is currently being mined by Tawana Resources.
The injection of nearly AUD$1.5m in funding is in addition to the anticipated receipts from the sale of its zinc assets to Kimberley Mining Limited, which will potentially deliver up CAD$32.5m in cash and shares next year.
The new funding will allow Metalicity to throw the kitchen sink at its large Paterson copper exploration play, where it has already commenced a compilation of regional datasets and defined significant targets for copper/gold at both the northern Mandora and southern Desert Queen project areas.
Metalicity Managing Director Matt Gauci said: “The immediate cash injection ensures the company can pursue its Pilbara copper exploration strategy aggressively while importantly retaining an interest in the lithium and cobalt projects via appropriate mechanisms.”
“The immediate cash injection is in addition to the anticipated AUD$35M cash/shares from the sale of our zinc assets to further support those activities.”
The sale of the company’s lithium and cobalt assets ensures that Metalicity retains a strong non-dilutive cash position to progress its copper exploration in the Pilbara, whilst retaining exposure the battery metals projects previously generated by it.