Trek Metals has proposed a scheme to acquire the advanced South Woodie Woodie Manganese Project, located in the Pilbara region of Western Australia.
Edge Minerals holds a majority interest in the South Woodie Woodie Project.
Trek Metals has entered into a binding 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 by way of a scheme of arrangement under Part 5.1 of the Corporations Act 2001 (Cth).
Implementation of the scheme is targeted for October 2022.
The transformational acquisition will give Trek Metals 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.
The South Woodie Woodie Project, which will be renamed the Hendeka Project following implementation of the scheme, provides Trek Metals 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 per cent of global consumption) and growing consumption by the lithium-ion battery sector.
Following completion of the acquisition, Trek Metals plans to undertake resource extension and exploration drilling to expand and upgrade the existing resource.
Drilling is expected to commence in the December 2022 Quarter, subject to drill rig availability.
In addition, metallurgical test work will be undertaken to determine the characteristics of the ore and the potential to produce battery-grade manganese products, including high-purity manganese sulphate monohydrate which is seeing growing demand for battery cathode manufacturing.
Existing Heritage and Land Access Agreements are in place, allowing for immediate access to commence on-ground activities.
Trek Metals Chief Executive Officer, Derek Marshall, said South Woodie Woodie represents an advanced, high-quality asset that offers an exciting opportunity for Trek Metals to target the rapidly expanding battery materials sector.
“Importantly, South Woodie Woodie already has an existing mineral resource, positive preliminary metallurgy and all required access agreements in place,” Mr Marshall said.
“This will enable Trek Metals to move ahead quickly with our initial work programs focused on expanding the existing resource and assessing the potential to produce battery-grade manganese products.
“High-purity manganese is expected to see strong demand growth over the coming years as an increasingly desirable component of battery cathode composition.
“The raw material is significantly less expensive than alternative cathode materials – such as cobalt and nickel – while also offering batteries with reduced charging time and enhanced safety performance.
“Excitingly, Trek Metals is ideally positioned to pivot towards the battery sector, with a Board that has a very strong track record in the space.
“Trek Metals Directors Tony Leibowitz, Neil Biddle and John Young all played a formative role at Pilbara Minerals during the discovery and development of the world-class Pilgangoora Lithium-Tantalum Project and have extensive experience and contacts in commercialising battery materials projects.”
Trek Metals and Edge Minerals shareholders will be asked to approve the proposed scheme at separate meetings expected to be held in September 2022.
