Win Metals and Auric Mining Forge $1.2M Agreement
WIN (WIN) Share Update July 2024 Monday 22nd
Win Metals Secures $1.2M Deal with Auric Mining
Win Metals Ltd (ASX: WIN) has announced a significant agreement with Auric Mining Ltd (ASX: AWJ), securing over $1.2 million through the divestment of nickel and lithium rights and other assets.
Instant Summary:
- Divestment of nickel and lithium rights to Auric Mining Ltd.
- Transaction nets Win Metals a minimum of $1.2 million over the next 12 months.
- Auric Mining gains control over nickel and lithium rights to a depth of 150m.
- Win Metals retains deeper nickel and lithium rights and access to water resources.
- Payments structured over several milestones: $100,000 deposit, $600,000 at settlement, $300,000 by December 2024, and $200,000 by June 2025.
Transaction Details
Win Metals Ltd has entered into a binding agreement with Auric Mining Ltd for the partial sale of its nickel and lithium rights in the Munda area. The deal involves the divestment of rights to a depth of 150 meters, covering 127,000 tonnes at a 1.69% nickel resource, equating to 2,140 tonnes of contained nickel metal.
The transaction will provide Win Metals with a minimum of $1.2 million over the next 12 months. Payments are structured as follows: a $100,000 deposit has already been paid, $600,000 will be paid at settlement, $300,000 by December 1, 2024, and $200,000 by June 1, 2025. Additionally, Auric will pay ongoing access fees for water usage.
Strategic Benefits
Win Metals' Managing Director and CEO, Mr. Steve Norregaard, emphasized that the Munda nickel resource does not feature in their short to medium-term development plans. This deal allows Win Metals to realize immediate value while retaining access to deeper nickel resources.
Auric Mining's Managing Director, Mr. Mark English, highlighted that the agreement provides Auric with greater control over their Munda Gold Project and access to essential water resources, removing significant obstacles for their operations.
Financial and Operational Impact
The agreement is expected to streamline Win Metals' operations by divesting non-core tenements and providing Auric with the necessary resources to advance their gold mining activities. Win Metals will retain rights to deeper nickel and lithium resources, ensuring long-term potential for their Mt Edwards Project.
The deal also includes the transfer of several exploration and prospecting tenements, further rationalizing Win Metals' tenure in the Widgiemooltha Dome region.
This transaction is likely to have a positive impact on Win Metals' stock as it provides immediate financial benefits and streamlines their operations. The structured payments ensure a steady cash flow over the next year, which should bolster investor confidence. For Auric Mining, gaining control over the nickel and lithium rights and access to water resources is crucial for advancing their Munda Gold Project, potentially boosting their stock as well.
Investor Reaction:
Analysts have noted the strategic benefits for both companies. Investors are optimistic about the immediate financial gains for Win Metals and the operational advantages for Auric Mining. The structured payments and retained rights for Win Metals are seen as a smart move to balance short-term gains with long-term potential.
Conclusion:
Investors should keep an eye on the execution of this agreement and its impact on both companies' operations and stock performance. Win Metals' strategic divestment and Auric Mining's enhanced control over their project area present a win-win scenario. Monitoring the progress of the Munda Gold Project and subsequent financial disclosures will be key for investors.