WIN Metals (ASX:WIN) is trading away its “non-core” Munda nickel deposit at Mt Edwards so it can inject as much as $1.4 million more into Butchers Creek following a “highly successful drill program late last year.”
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The mineral explorer agreed to sell the M15/87 tenement, including all related nickel rights and entitlements, to Auric Mining (ASX:AWJ) for $900,000 today and a further $500,00 before the end of the month.
The Munda exploration camp and several infrastructure assets, as well as seven years of water usage from the 132N open pit, were also baked into the $1.4M sale.
For WIN, selling Munda to Auric – who just started mining – is a “natural” next step that “meets key objectives for both parties” on either end of the pen.
“For WIN, it realises latent value and allows Auric a clear pathway forward to develop its Mund Gold Project,” WIN Metals CEO Steve Norregaard explained today. “This is another example of successful collaboration between parties to achieve a win-win outcome for our respective businesses.”
The “win-win” for WIN now sees it turn its attention to Butchers Creek, where it landed an upgraded MRE in April (up to 5.23 million tonnes at 1.91 grams per tonne of gold, yielding 321,000 ounces) and has been continuing drilling.
Explorations there continue while WIN also sniffs around “other opportunities.”
From Auric’s managing director, Mark English: “Buying all nickel rights and entitlements from WIN sees us taking another major step forward at Munda… [as] we’ve moved mining at Munda along rapidly this year.”
Auric was also quite interested in the Munda camp and all related infrastructure because it now allows them to bring their workforce closer to the mine.
WIN shares opened Tuesday trade up +11.7%, at 1.9cps. AWJ has been 17c.
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