Corazon Mining Ltd will bolster its war chest by up to A$9.5 million to continue growth opportunities at nickel sulphide assets in Australia and Canada as well as the Mt Gilmore Copper-Cobalt-Gold Project in New South Wales after divesting lithium rights at the Miriam Project in Western Australia.
The company has entered a sale agreement with lithium-focused explorer and developer Future Battery Minerals Ltd (FBM) which will see FBM subsidiary Eastern Coolgardie Goldfields Pty Ltd acquire 85% of Coolgardie Nickel Pty Ltd, a wholly owned subsidiary of Corazon.
Coolgardie Nickel holds the lithium and industrial minerals rights and tenement title for the Miriam Nickel Sulphide and Lithium Project within the Eastern Goldfields of Western Australia.
Consideration for sale
Corazon will receive up to A$9.5 million for 85% of the lithium rights at Miriam from FBM and will be free carried on lithium exploration and development costs until the completion of a definitive feasibility study (DFS).
The company will retain the base and precious metals rights, including nickel, through its wholly-owned subsidiary Coolgardie Mineral Rights Pty Ltd.
This transaction will deliver initial cash and FBM shares to Corazon, with performance rights allowing the company to participate in any future upside from FBM’s exploration or development success at the Miriam Project.
FBM will provide A$2 million as initial consideration with A$1 million in cash and A$1 million in FBM shares. Corazon will also receive up to A$7.5 million on FBM achieving project milestones with this amount to be in cash or FBM shares at FBM’s election.
About Miriam
Miriam is immediately north of FBM’s flagship Kangaroo Hills Lithium Project, near the town of Coolgardie within the Eastern Goldfields of Western Australia.
This acquisition by FBM represents the logical move to consolidate tenure prospective for lithium-bearing pegmatites within the region.
The Miriam Project offers a highly prospective, drill-ready opportunity following Corazon’s identification of outcropping spodumene lithium-bearing pegmatites within a large geochemical soil anomaly.
Use of funds
Corazon will use the funds received from this sale and the funds previously allocated to drilling at the Miriam lithium anomaly to advance activities at the Lynn Lake Nickel-Sulphide Project in Canada and the Mt Gilmore Copper-Gold-Cobalt Project in NSW.
The transaction is subject to conditions precedent and is anticipated to complete in May 2024.