- Lachlan Star (LSA) has rounded off a flurry of joint announcements with fellow explorer Liontown (LTR) by entering a trading halt
- Over the course of the day, Lachlan star has announced it will offer up a 51 per cent stake in its Koojan copper-nickel-platinum group element project in Western Australia to Liontown
- Separately to this joint venture, the companies also signed a binding term sheet for Lachlan Star to acquire Liontown’s Killaloe Gold Project in the Eastern Goldfields of WA
- Prior to the trading halt, Lachlan shares last traded at 2.3 cents each
Lachlan Star (LSA) has rounded off a flurry of joint announcements with fellow explorer Liontown (LTR) by entering a trading halt.
In something of an eventful day for Lachlan Star (LSA), the company announced it had executed a binding term sheet with Liontown, granting it the ability to earn a 51 per cent stake in the Koojan copper-nickel-platinum group element (PGE) project.
Under the terms of the agreement, Liontown will need to shell out $4 million in expenditure over five years at the West Australian prospect, while Lachlan Star co-funds the venture with $1 million to retain a 24 per cent stake.
Liontown is set to manage exploration on the project and will undertake it in
conjunction with its existing campaign on the Moora project, which sits on the eastern boundary of Koojan.
Killaloe Gold Project
Separately to the Koojan farm-in joint venture, Lachlan Star and Liontown also signed a binding term sheet for Lachlan Star to acquire Liontown’s Killaloe Gold Project, in the Eastern Goldfields of WA.
Under the agreement, Lachlan Star will acquire Liontown’s rights to the Killaloe Project for $600,000, which is set to be raised by issuing 40 million fully-paid ordinary shares to Liontown at $0.015.
Shares are set to be allocated across two tranches, the first entailing 15 million shares in relation to Liontown’s wholly-owned tenure and a further 25 million pertaining to Liontown’s 80 per cent-owned tenure.
Now, Lachlan Star shares have been placed in a trading halt, with a formal announcement and recommencement of trade expected on January 29.
There has been no explicit disclosure as to what the funds are to be used for or how much is set to be raised by either company.
Prior to the trading halt, Lachlan shares last traded at 2.3 cents each.