Poseidon Nickel has recommended exploration at its Lake Johnston project in the Goldfields after a deal with Mineral Resources was terminated.
The ASX-listed battery metals explorer told the market it has recommenced greenfields exploration “following a four-month hiatus” while it was focused on a sale process with MinRes.
Poseidon said its Lake Johnston project would now remain within the company’s portfolio.
“The board believes it has significant potential and opportunities for future value accretion within the company’s tenure and surrounding tenements,” it said.
In March, Poseidon entered a $15 million binding heads of agreement for Mineral Resources to acquire the project, after which it deferred exploration activities.
MinRes was proposing to convert the Lake Johnston nickel plant to treat lithium mined from its nearby Bald Hill and Mt Marion mines.
The following month Poseidon revealed MinRes was seeking to renegotiate the terms of the purchase, labelling the move “disappointing”.
MinRes later terminated the agreement following a period of due diligence.
The process came amid a challenging period for the company, after its chief executive stepped down and FTI's managing director Brendan Shalders was appointed to the top role.
On Mr Shalders’ appointment, Poseidon said it would undertake a range of cost cutting measures – including a scale back of exploration – in a bid to preserve its cash position.
Poseidon's shares last changes hands at 0.6 cents per share, up 50 per cent at 1.50PM AWST.
