Lode Resources Ltd (ASX: LDR) has announced a binding agreement with Rapid Critical Metals to divest its Webbs Consol silver project in northeast New South Wales. Lode Resources is a mineral exploration company focused on high-quality exploration and development projects within Australia. The agreement will see Rapid Critical Metals acquire the Webbs Consol EL 8933 and Webbs Consol Expanded EL9454 licenses.
Under the terms of the agreement, Lode will receive A$3.75 million in cash, with A$3 million payable upon completion and the remaining A$750,000 due 12 months thereafter. Additionally, Lode will receive 115 million shares in Rapid, equivalent to 15.3% of Rapid, based on their currently issued ordinary shares. Lode will also retain a 2% net smelter royalty (NSR) over the Webbs Consol project.
The divestment allows Lode to benefit from the potential consolidation of Webbs Consol with Rapid’s existing Webbs and Conrad silver deposits. Lode anticipates that Rapid will pursue a unified development scenario, potentially creating a significant silver production hub. The cash injection from the deal is expected to significantly bolster Lode’s balance sheet, enabling increased exploration activity at its flagship Montezuma project in Tasmania and the Magwood Antimony and Uralla Gold projects in the New England Fold Belt. The transaction remains subject to standard due diligence and potential shareholder approval from Rapid.
According to Executive Chairman Andrew Van Heyst, the company views the divestment as a win-win situation for both Lode and Rapid shareholders. He believes Rapid is ideally placed to progress a unified development of the assets and looks forward to the news flow from the Montezuma and Magwood projects. Lode Resources also confirmed that there is no new information or data that materially affects the information included in the relevant market announcement. Blue Ocean Equities is acting as financial adviser to Lode, and Thomson Geer is acting as legal adviser.
