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- Trek Metals (TKM) has entered into a scheme implementation agreement with Edge Minerals to buy South Woodie Woodie manganese project in the Pilbara region of WA
- South Woodie Woodie hosts a JORC inferred resource for the Contact and Contact North deposits of 11.3 million tonnes grading at 15 per cent manganese
- The transaction values Edge at around $4 million and is subject to Edge shareholder approval
- Trek CEO Derek Marshall said South Woodie Woodie is an “exciting opportunity” for the company to target the expanding battery materials sector
- Trek is up 1.22 per cent and trading at 8.3 cents per share at 10:44 am AEST
Trek Metals (TKM) has entered into a scheme implementation agreement with unlisted public company Edge Minerals to buy the South Woodie Woodie manganese project in the Pilbara region of WA.
South Woodie Woodie hosts a JORC inferred resource for the Contact and Contact North deposits of 11.3 million tonnes grading at 15 per cent manganese.
Previous test work has confirmed the ability to upgrade the project’s manganese concentrate to up to 44.6 per cent manganese. Trek said it plans to undertake further test work to determine the potential to produce battery-grade manganese products.
Under the terms of the purchase, Trek will buy all shares in Edge at a fixed exchange ratio of 2.12 new Trek shares for each Edge share held by Edge shareholders.
The transaction values Edge at around $4 million and is subject to Edge shareholder approval.
Trek CEO Derek Marshall said South Woodie Woodie is an “exciting opportunity” for the company to target the expanding battery materials sector.
“Importantly, South Woodie Woodie already has an existing Mineral Resource, positive preliminary metallurgy and all required access agreements in place. This will enable Trek 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,” he said.
“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.”
Trek plans to rename the project “Hendeka project.”
Following the completion, Trek 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.
On the market, Trek was up 1.22 per cent and trading at 8.3 cents per share at 10:44 am AEST.
