Boadicea Resources Ltd (ASX:BOA) is selling majority interests in its Queensland exploration tenements in order to focus more fully on its core critical minerals exploration properties in Western Australia.
The sale of the four tenements in a binding term sheet executed with a wholly owned subsidiary of Western Australian-based and ASX-listed Trigg Minerals Limited also sees Boadicea retain a 10% free-carried interest.
Free-carried interest
This free carry of all expenses related to the tenements will continue through to mining feasibility upon which time, Boadicea has the option to participate, sell or convert its share to a royalty.
In consideration, Trigg will pay BOA $20,000 and issue $300,000 worth of fully paid, ordinary shares at a price per share being VWAP (Volume Weighted Average Price per share) for the five trading days up to the completion date of the transaction.
New direction for BOA
Boadicea managing director Cath Norman said: “The transaction firmly launches BOA’s new strategy and company direction.
"By selling the majority interest in our Queensland projects and being free-carried on all expenditure for the remaining interest, we are freeing up capital and resources to dedicate to our core exploration tenements in Western Australia.”
Sale conditions
This transaction is subject to standard conditions precedent, including those related to title due diligence and transfer, negotiation of a joint venture agreement and both parties confirming there is no shareholder approval required to complete the transaction.
Both parties expect that these conditions will be satisfied by the planned completion date of January 31, 2024. Tenements that are the subject of the sale are:
- Clarke Reward (EPM27834);
- Mt Carmel (EPM27991);
- West Ravenswood (EPM27752); and
- Bosworth (EPM28419) - the application for the Bosworth tenement was granted by the Queensland Government on November 7, 2023.
Boadicea’s interest in the Hanns Gully (EPM21825) tenement in the Croydon Province of North Queensland is operated by Daly Resources and is not the subject of the agreement with Trigg.
"The board of BOA wishes to thank the TMG board for working collaboratively on this transaction,” Norman said.
Work plans at Two Tanks
Meantime, in Western Australia Boadicea will begin site works at the Two Tanks tenement in preparation for drilling towards the end of next quarter.
This drilling will focus on the three primary target areas mapped following the 2023 drilling program and using geochemical data indicating that higher lithium grades are more likely closer to the Copperfield Granite.
"BOA now looks forward to its drilling programs in the first half of 2024 focused on our lithium prospects in the first stage of our new company direction,” the MD added.
The company will provide an update on drilling plans in the new year, once site preparations are completed and a drilling window is locked in.