GreenTech Metals sign sale and joint venture agreement for non-core tenements

PERTH: GreenTech Metals Ltd. (ASX: GRE) has entered into a binding sale and joint venture agreement with Errawarra Resources Ltd. (ASX: ERW) for two granted tenements and one prospecting license application in Western Australia, the company announced Monday.

The agreement, which covers a combined area of 930 hectares adjacent to the Elizabeth Hill mining lease, will see GreenTech sell a 70% interest in the project tenements while retaining a 30% free-carried interest until a decision to mine is made. Errawarra will fund all exploration and tenement obligations, including a minimum expenditure of $1 million over four years.

As part of the deal, GreenTech will receive an upfront cash payment of $100,000, with an additional $2 million performance payment due if the project reaches the mining stage. Errawarra will also cover all costs associated with technical and project management assistance provided by ERM Consulting Group until the decision to mine.

The joint venture, managed by Errawarra, is expected to commence exploration activities in the coming weeks. The tenements involved include one granted prospecting license, one exploration license, and one prospecting license application, all held by GreenTech Holdings.

GreenTech’s primary focus remains on its Whundo Copper project, where recent drilling has confirmed significant massive sulphide intersections. The company is also finalizing plans to develop its lithium interests in the Pilbara region, near world-class lithium projects owned by SQM, Hancock Prospecting, and the Creasy Group.

Key terms of the agreement include:

– Errawarra will fund all joint venture expenditures and carry GreenTech’s 30% interest until a decision to mine is announced.

– Errawarra must spend a minimum of $1 million on exploration within four years, with potential extensions by mutual agreement.

– If Errawarra fails to meet the minimum expenditure requirements, it must compensate GreenTech for the shortfall, either in cash or shares.

– Upon a decision to mine, GreenTech can either convert its interest into a 2% net smelter royalty or continue to fund its share of joint venture expenditures.

The agreement is subject to several conditions, including the completion of legal and technical due diligence by Errawarra, a capital raising by Errawarra, and the grant of the prospecting license application.

GreenTech Metals, an exploration and development company, focuses on discovering and acquiring projects containing minerals critical to the battery storage and electric vehicle sectors, including lithium, nickel, copper, and cobalt. The company’s projects are primarily located in the West Pilbara and Fraser Range Provinces of Western Australia.