PERTH (miningweekly.com) – ASX-listed Future Battery Minerals and partner Lodestar Minerals have struck a A$10-million deal to sell certain of the Nepean nickel project tenements to buyer Rocktivity Nepean.

The tenements are held by subsidiary Eastern Coolgardie Goldfields, which is 80% held by Future Battery Minerals and 20% held by Lodestar.

Under the terms of the agreement, Rocktivity would acquire the tenements for A$10-million in cash, which would be payable in tranches. The first A$100 000 will be paid as a non-refundable cash deposit, with a further A$2.7-million payment due on completion.

A further A$7.2-million in cash will be paid in deferred instalments.

Future Battery Minerals told shareholders on Tuesday that the sale tenements did not comprise any of the tenements which either hosted, or immediately surrounded, the Kangaroo Hills lithium project where the company has made a lithium discovery.

“As a result of the new exploration focus on the company’s two exciting lithium discoveries, we have been looking at rationalising the company’s portfolio which has resulted in the execution of a sale of the Nepean nickel project,” said Future Battery Minerals executive chairperson Mike Edwards.

“The board believes that the timing is right and the sale proceeds will strengthen the company’s cash reserves to progress our strategic lithium exploration projects, comprising the high-grade, hard rock, 80%-owned Kangaroo Hills lithium project and large-scale sedimentary potential of our and Nevada lithium project.”

Lodestar MD Ed Turner said on Tuesday that the sale of the Nepean assets would provide a welcome cash injection, totalling A$2-million, to Lodestar, which would largely be devoted towards the exploration of the company’s Earaheedy project.

“The Earaheedy basin has already proven to host Rumble Resource’s Tier 1 zinc/lead/silver Chinook deposit and has the potential for more discoveries within our 1 334 km² land package. The Earaheedy will be the primary focus of our exploration efforts over the coming years as well as our commitment to the Kangaroo Hills joint venture project with Future Battery Minerals who have recently made a significant lithium discovery.”