Nickel miner Sally Malay Mining Ltd is to purchase Liontown Resources Ltd's Cowan Nickel Project assets in the easter Goldfields in a deal worth about $2 million.
Nickel miner Sally Malay Mining Ltd is to purchase Liontown Resources Ltd's Cowan Nickel Project assets in the easter Goldfields in a deal worth about $2 million.
The cash consideration of almost $1.7million. In addition, Sally Malay has agreed to subscribe for 2.75 million shares in Liontown at $0.115, with an additional 1.25 million, two year unlisted option to acquire shares in the company at a price of $0.225.
Full announcement below
Sally Malay Mining Limited has agreed to purchase Liontown Resources Limited's interests in the Cowan Nickel Project for a cash consideration of $1.685 million. As part of the transaction, Sally Malay has also agreed to subscribe for 2.75 million shares in Liontown Resources at $0.115 each and in addition will also receive 1.25 million, 2-year, unlisted options to acquire shares in Liontown Resources at an exercise price of $0.225.
The purchase of the Cowan Nickel Project is subject to certain conditions precedent for transactions and third party
consents, and completion is expected prior to 30 June 2008.
The Cowan Nickel Project comprises all of Liontown Resources' nickel interests in the Eastern Goldfields of Western
Australia, including a 60 per cent interest in the Junction South Joint Venture and the nickel rights over the Logan's Find
tenement.
The Cowan Nickel Project increases Sally Malay's commitment to nickel exploration in the Kambalda region by
adding a total tenement holding of about 520km² (Figure 1). Cowan Nickel Project comprises a tenement holding
adjacent to operating nickel mines at Miitel, Mariners, Wannaway and Redross. Junction South comprises a
tenement holding of approximately 20km² located 10km south of Sally Malay's Lanfranchi JV operation. Logan's
Find comprises one tenement (approximately 56km²) located 30km west of Kambalda and 15km north west of the
historic Spargoville nickel mine, in the same stratigraphic succession that hosts the Widgiemooltha nickel deposits.
Previous exploration on the Cowan Nickel Project has been dominantly focussed on gold over the past twenty years.
A significant opportunity can now been realised through the application of modern geophysics to the detection of
nickel sulphide mineralisation. Indeed, the application of modern surface electromagnetic (EM) techniques has
resulted in the recent discovery of the extensions to the high-grade Deacon nickel deposit and the most recent highgrade
nickel mineralisation on the Northern Tramways Dome at the Company's 75% owned Lanfranchi JV operation.
The Company is delighted to have increased its land holding in the Kambalda district on ground that is considered
prospective for nickel sulphides and assuming the purchase is completed prior to the 30 June 2008 as expected, the
Company looks forward to commencing exploration activities soon after settlement.
