Corazon Mining has completed its 85% divestment of lithium and industrial mineral rights over the Miriam project in WA
Corazon receives A$1m in cash plus 16m fully paid ordinary shares and 121m performance rights in Future Battery Minerals
CZN maintains 100% of the base and precious metals rights and is free carried on lithium exploration and development costs until the completion of a definitive feasibility study (DFS)
Divestment allows CZN to remain focused on its nickel sulphide assets in Canada
Special Report: Corazon has received $1m cash and shares from the divestment of 85% of the lithium rights for the Miriam project.
Nickel focused Corazon Mining (ASX:CZN) has completed its 85% divestment of lithium and industrial mineral rights for the Miriam project in WA to lithium-focused explorer and developer Future Battery Minerals (ASX:FBM).
The Miriam project is10km south-west of Coolgardie in WA’s Eastern Goldfields and immediately north of FBM’s flagship Kangaroo Hills lithium project, enabling a strategic consolidation of prospective landholdings 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.
Doubling down on nickel
For CZN, the divestment means it can focus on its nickel assets including the flagship Lynn Lake nickel sulphide project in Manitoba, Canada, which boasts a 16.3Mt resource for 116,800t nickel, 54,300t copper and 5,300t cobalt.
CZN is also preparing for a maiden drill program at the May Queen prospect within the wider Mt Gilmore copper-gold-cobalt project, 35km from the city of Grafton in northeastern NSW.
The company plans to use proceeds from the sale to advance both these assets.
Transaction details
So far, the transaction has delivered initial cash and FBM shares to CZN with performance rights, allowing CZN to participate in any future upside from FBM’s exploration or development success at the combined Miriam and Kangaroo Hills lithium projects.
The company is also free carried on the lithium exploration and development costs until the completion of a DFS. It also retains 100% of the project’s base and precious metals rights.
Here are the transaction terms:
$1m in cash has been paid ($250,000 as a deposit and A$750,000 in cash at completion);
16,129,033 fully paid ordinary shares in FBM (FBM Shares) have been provided;
120,967,744 performance rights (performance rights) are payable on completion with the following vesting conditions;
8,064,517 performance rights will vest upon achievement of a drillhole intercept of at least +15m at +1% Li2O at Miriam;
32,258,065 performance rights will vest upon definition of a resource estimate of greater than 10Mt at +1% Li2O at Miriam;
80,645,162 performance rights will vest upon definition of a resource estimate of greater than 20Mt at +1% Li2O at the Miriam lithium project.
Upon satisfaction of the vesting conditions, FBM may (at its sole discretion) elect to make a cash payment or issue FBM shares to CZN.
CZN is now free carried on the lithium exploration and development costs until the completion of a DFS.
It also retains 100% of the project’s base and precious metals rights.
This article was developed in collaboration with Corazon Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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