Firebird Metals Ltd (ASX:FRB, OTC:FRBMF) has completed the farm-out of an 80% interest in non-core DSO manganese assets in the East Pilbara region of Western Australia to Macro Metals Ltd.
Following due diligence, both parties have amended the terms of the farm-out agreement signed in July 2024 with the Midgengadge project (E45/5906) removed from the acquired tenement package.
Amended terms
Under the amended terms Macro will now only acquire an 80% interest in the Wandanya Project (E46/1456 and E46/1457) and the Disraeli Project (E46/1389).
As a result, the consideration payable by Macro to Firebird for its 80% interest is now:
minimum aggregate expenditure of A$112,500 across the two projects within 12 months of completion of the acquisition; and at least 10 reverse circulation (RC) drill holes for a minimum of 100 metres drilled in total on each project, the costs of which shall be included in calculation of the A$112,500 minimum aggregate expenditure.
All other terms of the acquisition, as announced on July 23, 2024, remain the same.
READ: Firebird Metals moves to farm-out non-core manganese tenements to Macro Metals
Farm-out rationale
Farming out the non-core tenements allows Firebird to concentrate more fully on the development of the Oakover Project and the company's Chinese lithium manganese iron phosphate (LMFP) sulphate plant.
Oakover holds a mineral resource estimate of 176.7 million tonnes at 9.9% manganese with 105.8 million tonnes at 10.1% manganese in the indicated category.
The company, an advanced manganese developer focused on combining mining and downstream processing to advance the EV battery sector, will retain a free-carried 20% interest in the farmed-out projects until a decision to mine and will earn a 1% sales commission based on Free on Board revenue.
At the time of the agreement, Firebird managing director Peter Allen said: "By partnering with Macro, we leverage their expertise and resources to drive the development of these tenements, which not only ensures that they receive the necessary investment and development attention but also allows Firebird to benefit from potential production and value growth without immediate capital outlay.
"We are confident that this collaboration will unlock value for our shareholders and look forward to a prosperous collaboration with Macro."