- Golden State Mining (GSM) is handballing two tenements from its Cue project in WA’s Murchison region to fellow ASX-listed Victory Metals (VTM)
- In return for the prospecting licences, Victory will give Golden State $30,000 in VTM shares, nearly 67,000 options, and a one per cent net smelter royalty
- GSM says the transaction allows it to better focus on its lithium exploration activities at its Yule project in the Mallina Basin
- Further, GSM says entrusting the prospecting licences to Victory will “unlock the rare earth element (REE) potential” of the two tenements
- GSM shares closed 10.3 per cent higher at 3.2 cents and VTM shares closed 7.5 per cent higher at 22 cents on Tuesday afternoon
Golden State Mining (GSM) has announced its plans to handball two tenements in WA’s Murchison region to fellow ASX-listed Victory Metals (VTM).
In return for the prospecting licences, Victory will give Golden State $30,000 in VTM shares, 66,666 options, and a one per cent net smelter royalty. The options have a strike price of 30 cents and expire two years after their date of issue.
The two projects lie nearby to VTM’s Cue ionic clay rare earth element discovery and are contiguous with VTM’s North Stanmore rare earth element project, which lies 10 kilometres north of Cue.
GSM Managing Director Michael Moore said the transaction would give the company exposure to VTM’s exploration success as it progresses with its Cue ionic REE discovery.
“This transaction allows GSM to continue to focus on its lithium exploration activities at its 100-per-cent-owned Yule project in the Mallina Basin as well as the 100-per-cent-owned Paynes Find lithium project, where recent results delivered a number of high-priority lithium targets to follow up in 2023,” Mr Moore said.
GSM shares closed 10.3 per cent higher at 3.2 cents and VTM shares closed 7.5 per cent higher at 22 cents on Tuesday afternoon.