- Sunrise Energy Metals (SRL) has reached an agreement with Lotus Resources (LOT) to acquire the Hylea Project, expanding the company’s footprint in the Lachlan Fold Belt in NSW
- Hylea is located roughly 50 kilometres north of the Sunrise Project on the western side of the Lachlan Orogen in NSW
- SRL will acquire a 100 per cent interest in several exploration licenses for $2.5 million, with $1 million payable in cash and $1.5 million payable in cash and/or SRL shares
- If settled in shares, the number of Sunrise shares issued will be determined based on the volume-weighted average price for the five trading days before completion
- Completion will be subject to Ministerial approval of the transfer of the exploration licenses from Lotus to Sunrise
- Sunrise Energy Metals shares are up 6.09 per cent, trading at $2.44 each
Sunrise Energy Metals (SRL) has reached an agreement with Lotus Resources (LOT) to acquire the Hylea Project, expanding the company’s footprint in the Lachlan Fold Belt.
Hylea is located roughly 50 kilometres north of the Sunrise Project on the western side of the Lachlan Orogen in New South Wales.
In 2018, Lotus completed a 54-hole drill program over 3624 metres at the project.
The program intersected a well-developed at near-surface laterite and in-situ clay profile developed over ultramafic rock types, including dunites, pyroxenites and peridotites.
The agreed transaction will see SRL acquire a 100 per cent interest in several exploration licenses for $2.5 million, with $1 million payable in cash and $1.5 million payable in cash and/or SRL shares.
If settled in shares, the number of Sunrise shares issued is set to be determined based on the volume-weighted average price for the five trading days before completion.
Sunrise Energy Metals CEO Sam Riggall commented on the company’s latest addition.
“Acquisition of the Hylea Project is consistent with our strategy to expand our footprint in the highly prospective Lachlan Fold Belt by adding to our already sizeable inventory of nickel and cobalt,” Sam said.
“We believe that demand for these metals in coming years will be enormous. With enough nickel and cobalt in our current Sunrise resource to support approximately 1.5 terawatt-hours of cathode capacity, our objective is to continue adding to this resource base in a region that provides safe, sustainable, low-cost supply,” the CEO added.
Completion of the deal is subject to Ministerial approval of the exploration licenses transfer from Lotus to Sunrise.
Sunrise Energy Metals shares are up 6.09 per cent, trading at $2.44 cents at 11:36 am AEST.