Bryah to offload Lake Johnston lithium-nickel stake

Neil WatkinsonKalgoorlie Miner
Bryah Resources is selling a 51 per cent stake in the Lake Johnston lithium-nickel project.
Camera IconBryah Resources is selling a 51 per cent stake in the Lake Johnston lithium-nickel project. Credit: Bryah Resources/Supplied

Bryah Resources has signed an option agreement with Mining Green Metals to sell a 51 per cent stake in the Lake Johnston lithium-nickel project to concentrate its focus on its near-term production assets elsewhere in WA.

Bryah told the ASX on Thursday the Lake Johnston project covered eight exploration licence applications across a 690sqkm area 200km southwest of Kalgoorlie-Boulder.

The company acquired the project in November last year, which included three tenements from West Coast Minerals that Bryah picked up for $181,000.

Bryah chief executive Ashley Jones said on Thursday the Lake Johnston tenements were prospective for battery metals lithium and nickel.

“The divestment allows the company to focus on its near-term production assets — the Bryah Basin Manganese joint venture with OM Holdings, and the Gabanintha copper nickel cobalt base metal project,” Mr Jones said.

“It is also continuing to explore the highly prospective VMS copper gold Windalah project.”

Mr Jones said the option agreement would give Bryah and its shareholders several benefits, including five million Mining Green Metals fully paid ordinary shares, the retention of a 49 per cent stake in the Lake Johnston project and also a potential further five million Mining Green Metals shares for the remaining 49 per cent interest.

Bryah said in its ASX statement the completion of the acquisition was dependent on Mining Green Metals undertaking due diligence, the tenements being granted and Mining Green Metals completing an initial public offering on the ASX.

“MGM will pay Bryah $25,000 as an option fee, with the option exercise period of 12 months,” it said.

“A second option period of 12 months relates to the acquisition of BYH’s 49 per cent interest.”

Mr Jones became Bryah chief executive in December, replacing Neil Marston, who resigned as managing director.

Bryah said the exploration ground extended to within 10km east of the $1.9 billion Mt Holland lithium mine and concentrator being developed under the Wesfarmers-Sociedad Quimica y Minera de Chile joint venture.

“The Mt Holland lithium project includes the Earl Grey lithium deposit with a reported mineral resource of 1.89 million tonnes grading 1.5 per cent lithium oxide, making it a globally significant high-grade hard rock lithium deposit,” Bryah said.

“The Lake Johnston lithium-nickel project also includes ground to the immediate west and north of Poseidon Nickel Lake Johnston Project encompassing the Maggie Hays/Emily Ann mine and associated processing plant, which is currently under care and maintenance.

“The Emily Ann mine historically produced 46,000 tonnes of nickel with a resource grade averaging 4.1 per cent nickel.”

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