Bastion Minerals Limited (ASX: BMO) has has signed a binding Letter of Intent (LOI) with ASX listed Hot Chili Ltd (ASX: HCH) for an option for HCH to acquire the Cometa Copper Project in Chile for up to US$3.3M in cash.
Executive Chairman, Mr Ross Landles, commented: “The Bastion Board is thrilled with the outcome for the divestment of the Cometa Copper asset to our neighbours in Chile, should the option be exercised. Hot Chili Ltd has a strong track record of consolidating tenure around its Costa Fuego Project and has already undertaken significant due diligence on Cometa.”
Divestment will enable Bastion to realise near term value for shareholders from the Cometa Copper Project and focus on the highly prospective Canadian Lithium Project and Swedish Rare Earth Element (REE) Project. Further, confirmation received from the ASX that shareholder approval is not required for the divestment of the Cometa Copper Project.
Lithium exploration results are due in Q3, with well-regarded Canadian geological consultancy Orix Geoscience Inc onsite at the McCombe North and Raleigh Lake Lithium Projects in Ontario, Canada. On ground exploration is expected to commence in Q3 2023 at the Gyttorp REE Project in Sweden. Exploration activities will include systematic geochemical sampling of known mineral occurrences within the project permit.
“The option over Cometa has the potential to create significant near-term value for shareholders. This is the right buyer at the right time for Bastion. If the option is exercised, the funds received will be directed towards exploration in Canada and Sweden. “We will now be able to concentrate our focus towards our lithium and REE assets based in Canada and Sweden respectively.” Added Ross.
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