Sky Metals Limited (ASX: SKY) has entered into a binding option agreement with Locksley Resources Limited (ASX: LKY) to divest its non-core Iron Duke copper-gold project in New South Wales, with a total potential transaction value of A$1.1M.
The agreement grants Locksley an exclusive nine‑month option to acquire 100% of the project, comprising exploration licences EL9191 and EL6064. The transaction includes a A$100,000 non‑refundable option fee, followed by A$500,000 in initial consideration on exercise of the option, payable in cash and/or shares, subject to approvals.
A further A$500,000 milestone payment is payable upon either the delineation of a JORC resource of at least 3.0Mt at 1.0% copper equivalent or a sale of the asset to a third party.
Sky Metals indicated that the divestment aligns with its strategy to streamline its portfolio and focus capital and management attention on its advanced tin development projects at Tallebung and Doradilla.
The Iron Duke project is considered prospective but remains early‑stage and non‑core to SKY’s current development priorities. The transaction enables SKY to unlock value through a structured exit while retaining upside exposure via milestone‑linked payments.
SKY also highlighted that proceeds from the deal provide non‑dilutive funding and support redeployment of capital toward near‑term development assets.
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