Trek Metals Ltd has signed a binding term sheet that sees the company acquire 100% of the Kroussou zinc-lead project in Gabon from Battery Minerals Ltd (BAT).
Trek will pay BAT US$400 000 in a mix of cash and securities as well as a deferred consideration of shares and options that totals US$2.5 million, subject to a mineral resource of 250 000 t of combined zinc-lead metal being estimated on the project. Trek will also grant BAT a 2.5% net smelter return (NSR) on the project, which is subject to a 1% buyback by Trek with the payment of US$1.5 million in cash.
Trek Managing Director, Bradley Drabsch, commented: “The Kroussou zinc-lead project presents a truly magnificent opportunity for Trek to grow substantially with the potential for the discovery of a very significant zinc-lead orebody in Gabon. The price of zinc is continuing to appreciate to near record levels and we are poised to take full advantage at this time.”
BAT Executive Chairman, David Flanagan, said: “With Trek already in the process of earning 70% of the Kroussou project and BAT focusing on developing its two high grade, low cost graphite projects in Mozambique, this is a perfect time for the Kroussou project to be 100% owned by one ASX listed company. At the same time, BAT will retain significant upside to the Kroussou project through the mineral resource estimate based deferred consideration and NSR.”