Trek Metals Limited (ASX: TKM) (“Trek” or the “Company”) is pleased to advise that it has secured an exceptional near-term development opportunity in the battery materials sector through the proposed acquisition of the advanced South Woodie Woodie Manganese Project, located in the Pilbara region of Western Australia (see Figure 1).
Trek has entered into a binding scheme implementation agreement (“Scheme Implementation Agreement”) under which it will, subject to the satisfaction of various conditions, acquire all of the shares in the capital of unlisted public company Edge Minerals Limited (“Edge”) by way of a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth) (“Scheme”). Edge holds a majority interest in the South Woodie Woodie Project.
Implementation of the Scheme is targeted for October 2022.
The transformational acquisition will give the Company an opportunity to pursue the development of an advanced and well-located manganese project in a Tier-1 mining district. The project comprises seven granted Exploration Licences, one pending Exploration Licence and one Retention Licence – refer Appendix 2 & 3 for additional information.
The South Woodie Woodie Project, which will be renamed the Hendeka Project following implementation of the Scheme, provides Trek with exposure to a metal with strong supply-demand fundamentals and a robust outlook given its use in steel manufacturing (which currently accounts for 85-90% of global consumption) and growing consumption by the lithium-ion battery sector.
South Woodie Woodie has a JORC (2012) Inferred Mineral Resource Estimate (MRE) of 11.3Mt grading 15.0% Mn for the Contact and Contact North deposits (refer Table 1, Appendix 1, 2 & 4 for additional information), with immediate drill targets for both Resource extensions and new discoveries.
Metallurgical beneficiation test work was previously undertaken by Spitfire Resources Ltd, on PQ diamond core in collaboration with Mineral Engineering Technical Services (METS) to maximise recovery and grade. Composite intervals were put through a scrubbing test to remove slimes (<1mm) before being separated into fines and lump and then passed through Dense Media Separation (DMS) to remove additional waste. After the DMS tests, the final grade and yield of both products was determined. Based on the results of the test work, a product grading up to 44.6% can be produced (refer Appendix 1 and ASX: SPI 17 February 2012 for additional information).