Future Battery Minerals Completes Final Payment for Nepean Nickel Project Sale
FBM (FBM) Share Update September 2024 Monday 23rd
Future Battery Minerals Announces Final Payment for Nepean Nickel Project Sale
Future Battery Minerals Limited (ASX: FBM) has announced the receipt of the final deferred consideration payment for the sale of its Nepean Nickel Project to Rocktivity Nepean Pty Ltd.
Instant Summary:
- Final deferred payment of $773,656 received from Rocktivity Nepean Pty Ltd.
- No further cash payments expected under the Tenement Sale Agreement.
- Future earnings include a 1% net smelter royalty on minerals and metals produced.
- Potential additional $500,000 payment based on specific milestones.
Final Payment Details
Future Battery Minerals Limited (ASX: FBM) has confirmed the receipt of the final deferred consideration payment of $773,656 from Rocktivity Nepean Pty Ltd. This payment marks the completion of the financial obligations under the Tenement Sale Agreement, originally announced on 18 September 2024.
According to the agreement, Rocktivity Nepean Pty Ltd, along with Rocktivity Mining Pty Ltd and Eastern Coolgardie Goldfields Pty Ltd (a wholly owned subsidiary of FBM), had agreed to a series of deferred payments. With the final payment now completed, no further cash payments are expected under this agreement.
Future Earnings Potential
Despite the completion of the deferred payments, Future Battery Minerals still stands to benefit from the Nepean Nickel Project through a 1% net smelter royalty on all minerals and metals produced and sold from the project tenements. Additionally, there is a potential for an extra $500,000 payment to Eastern Coolgardie, contingent upon achieving certain milestones.
These milestones include Rocktivity and/or Rocktivity Mining completing the sale of all or part of the Nepean Nickel Project tenements for a consideration exceeding $5,000,000, or delineating a mineral resource of more than 300,000 ounces of gold within the project tenements.
Company Statement
The announcement was authorized for release by the Board of Directors of Future Battery Minerals Limited. CEO and Managing Director Nicholas Rathjen expressed optimism about the future earnings potential from the net smelter royalty and the additional milestone payment.
The completion of the final payment is a positive development for Future Battery Minerals, as it secures the financial aspects of the Tenement Sale Agreement. The 1% net smelter royalty provides a continuous revenue stream, while the potential $500,000 milestone payment offers additional financial upside. This news is likely to be viewed favorably by investors, as it demonstrates successful execution of the company's strategic transactions.
Investor Reaction:
Analysts are likely to react positively to this announcement, noting the successful completion of the payment agreement and the ongoing revenue potential from the net smelter royalty. The additional milestone payment adds an element of future financial upside, which could further bolster investor confidence in the company's strategic direction.
Conclusion:
Investors should take note of the successful completion of the Nepean Nickel Project sale and the ongoing revenue potential from the net smelter royalty. The potential for an additional $500,000 payment based on specific milestones adds further financial upside. Future Battery Minerals' strategic management of this sale demonstrates a strong commitment to maximizing shareholder value.