Business
Munda Agreement with Auric Mining Ltd yields $1.2m+ for WIN
Munda Agreement with Auric Mining Ltd yields $1.2m+ for
About this update from Win Metals Ltd
WIN Metals Ltd (ASX: WIN) ('WIN' or 'the Company') and Auric Mining Ltd (ASX: AWJ) are pleased to announce that the two parties have successfully executed a Binding Term Sheet on 22 July 2024 for the partial sale of WIN's nickel, lithium and other associated metals rights to a depth in relation to an excised area within M15/87, referred to as Munda. M15/87 is a small mining tenement comprising part of WIN's broader Mt Edwards Project . For the nickel rights component the price agreed was $1.0 Million with a total initial transaction value under the Binding Term Sheet of $1.2 million . WIN has divested its nickel and lithium rights down to 235mRL or 150m in depth, being Auric's Rights Area, on tenement M15/87, a granted mining lease which contains Auric's Munda Gold Project and WIN's Munda nickel Win Metals Managing Director and CEO, Mr Steve Norregaard , commented: 'Our Munda nickel resource doesn't feature in the short to medium term horizon for development as part of our larger Mt Edwards Project . The nickel resource lies predominantly below the level divested in favour of our gold rights partner Auric. This deal achieves key objectives for both parties in realising value for WIN in the short term and divesting ourselves of some lower value or non-key tenements whilst providing Auric a clear runway for the proposed development of its Munda Gold Project . A win-win for both parties. 'We have done a logical deal whilst retaining access to the greater proportion of the nickel mineralisation and depth extensions which exist below the -150mRL from surface exclusion zone and retain our 100% interests in nickel and lithium over greater than 50% of the mining tenement in question. A clear and sensible deal to allow both co-tenants to carry on with their respective businesses minimising interference/interplay. 'Preserving the value of our nickel project remains foremost in our plans, however, in the case of Munda, the remaining resource will, as a result of this transaction, ultimately be able to be accessed at a much lowercapital cost and be available for exploitation in a timeframe that more fits an anticipated appreciation of the underlying commodity value and our longer-term view for project development.' Auric Mining Managing Director, Mr Mark English , commented: 'We now have greater control over our destiny for open pit gold mining at the Munda Gold Project . 'Buying the nickel and lithium rights from WIN Metals down to the 235m RL (which is approximately 150m below surface) and having sole rights to an agreed area means we have now taken another major step forward to commencing a trial pit at Munda. 'There's not much water around Widgiemooltha, so as part of this transaction we are acquiring access to stored water in the 132 North pit from WIN, removing a significant obstacle for us. 'WIN Metals has been pragmatic about the negotiation. We have reached a highly satisfactory agreement for Auric shareholders. 'We've moved Munda along rapidly this year and this hurdle has been removed. We are planning to mine a trial pit in Q1 2025 WIN has divested its nickel and lithium rights down to 235mRL or 150m in depth, being Auric's Rights Area, on tenement M15/87, a granted mining lease which contains Auric's Munda Gold Project and WIN's Munda nicke resource. WIN retains rights within the Auric Rights Area after a period of 8 years to access the Company's nickel resources below 235mRL via access from the proposed open pit Auric is planning to excavate. In the event that mining of the open pit is continuing at this point, WIN reserves the right to access and co-operate within the open pit confines at that time, thus not impinging on WIN's proposed plans for its nickel development. WIN has allowed access rights for Auric to source water from mining lease M15/101 132N Open Pit on an exclusive basis for 3 years, thereafter until the expiration of 8 years on a non-exclusive basis, with WIN reserving rights to access water from the same source for any proposed works associated with its FaradayTrainline lithium development. Auric will pay an ongoing access fee based on water consumption of $1.50 per cubic metre for water access to WIN during the 8-year term of the agreement. As part of the deal WIN has divested a series of exploration and prospecting tenements and associated applications, thereby rationalising the Company's tenure in the Widgiemooltha Dome region for $25,000 plus other fixed assets totalling $45,000 . WIN has received a non-refundable deposit of $100,000 as at signing of the Binding Term Sheet. At settlement of the transaction, targeted on or before 29 July 2024 , Auric will pay WIN a further $600,000 , with additional payments of $300,000 on 1 December 2024 and $200,000 on 1 June 2025 . Forward Looking Statements This announcement includes forward-looking statements that are only predictions and are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of WIN Metals Ltd , the directors and the Company's management. Such forward-looking statements are not guarantees of future performance. Examples of forward-looking statements used in this announcement include use of the words 'may', 'could', 'believes', 'estimates', 'targets', 'expects', or 'intend' and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of announcement, are expected to take place. Actual values, results, interpretations or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forwardlooking statements in the announcement as they speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, WIN Metals Ltd does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based. Contact: Steve Norregaard Managing Director WIN Metals [email protected] Tel: 0472 621 529 (C) 2024 Electronic News Publishing, source ENP Newswire