MinRes to spend $60m on battery metal rights

Mineral Resources will purchase the lithium and base metal rights at Pantoro’s Norseman gold project under a $60 million deal adding to its acquisitive streak.

Pantoro told the market it had executed a binding agreement with MinRes to divest its lithium, nickel, copper and cobalt rights on its Norseman gold project for $60 million in cash plus royalties.

It comes after the Chris Ellison-led miner this time last week confirmed it had bought a 12.3 per cent stake in Azure Minerals, owner of the Andover lithium project in the Pilbara.

MinRes also bought a stake in Wildcat Resources this month, added to shares in Delta Lithium and Global Lithium, and is set to buy the Bald Hill mine out of receivership.

Under the deal announced today, MinRes will pay $30 million upfront and will pay the remaining funds upon making a final investment decision to commence a nickel, copper and cobalt mining operation.

A 2 per cent net smelter royalty on all copper, cobalt and nickel recovered and a 0.75 per cent free on-board lithium royalty will be paid to Pantoro under the deal.

Pantoro will retain ownership of the tenure and will hold the rights to precious, other base metals and battery minerals over the tenement package in the eastern Goldfields.

The miner said the deal represented a strong return on non-core mineral rights for which no mineral resource exists or significant discovery had been made, to date.

“This transaction provides Pantoro with strong immediate value for minerals which have not yet been identified in economic quantities at Norseman,” Pantoro managing director Paul Cmrlec said.

“Realisation of value from the assets allows Pantoro to continue to concentrate on production and exploration of its gold assets, with potential value from platinum group elements retained for future consideration.

“We wish Mineral Resources the best of luck with its future exploration campaigns in the area.”

The Norseman gold project has experienced delays and challenges with ramp-up linked to labour and skills shortages, the miner said in August.

Pantoro was advised by Azure Capital and DLA Piper.

The miner’s shares were surging 20.5 per cent to trade at 4.7 cents apiece at 11AM AWST.