Firebird Executes Farm-Out Agreement with Macro Metals
Released
Released
Announcement PDF
ASX ANNOUNCEMENT
23 July 2024
Firebird Executes Farm-Out Agreement with Macro Metals on
Non-Core Manganese Tenements
HIGHLIGHTS
•
Firebird executes farm-out agreement for Macro Metals Ltd (ASX:M4M) to
acquire an 80% interest in the Wandanya, Disraeli and Midgengadge Manganese
tenements
•
Macro will invest an initial $150,000 within the first 12 months and undertake a
10-hole RC drill program with a minimum of 100m to be drilled on each of the
four tenements
•
Firebird will retain a free-carried 20% interest in the Projects until decision to
mine
•
Firebird to earn 1% sales commission (based on FOB revenue)
•
Agreement enables Firebird to focus on the development of the Oakover Project
and the Company’s Chinese manganese sulphate plant
•
Agreement gives Firebird exposure to upside from future development of the
tenements
•
Macro has proven and strong management in the exploration and development
of greenfield projects
Firebird Metals Limited (ASX: FRB, “Firebird” or “the Company”) is pleased to announce that
it has signed an agreement with Macro Metals Ltd (“Macro”) regarding the development of
Firebird’s Wandanya, Disraeli and Midgengadge tenements.
This agreement will see Macro invest $150,000 over 12 months at the Wandanya (E46/1456 and
E46/1457), Disraeli (E46/1389) and Midgengadge (E45/5906) tenements and completion of at
least 10 RC drill holes, with 100m to be drilled on each of the tenements, to earn an 80% interest.
Firebird Managing Director Mr Peter Allen commented: “This agreement allows Firebird to
continue its strategic focus on the Oakover Project and our Chinese LMFP strategy. 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.”
Suite 38, 460 Stirling Highway
Peppermint Grove WA 6011
ABN: 24 610 035 535
+61 8 6245 9818
admin@firebirdmetals.com.au
ASX:FRB
www.firebirdmetals.com.au
Key Agreement Terms
Firebird has signed a binding Heads of Agreement with Macro Metals Ltd (“Macro”), an unrelated
party, whereby Macro has the exclusive right to earn 80% in four tenements (E46/1456,
E46/1457, E46/1389 and E45/5906) (Tenements) by committing to spend $150,000 in
exploration and development expenditure on the Tenements within 12 months (Agreement).
This expenditure must include at least 10 RC holes, for a minimum total of 100 metres drilled on
each of the four tenements. Macro will assume full responsibility for the Tenements over this
earn-in period.
Firebird’s 20% interest will be free carried until such time Macro makes a decision to mine, at
which point Macro and Firebird will enter into an incorporated joint venture (“SPV”). The SPV will
enter into a life of mine, mining services contract with Macro’s wholly owned, mining services
subsidiary, Macro Mining Services Pty Ltd, for the provision of all services across the entire pit to
customer supply chain on a commercial, arms’ length schedule of rates. Firebird retains the
ability to transfer its 20% interest into a 1% royalty. The Agreement also allows for Firebird to
earn 1% sales commission (based on Free on Board (FOB) revenue).
Completion of the transaction is conditional upon due diligence to the absolute satisfaction of
Macro and any necessary regulatory or third-party consents or approvals required before close
of business on 30 September 2024 (or such time as otherwise agreed).
The Agreement otherwise contains terms and conditions considered standard for agreements of
this nature.
The Company notes that Mr Evan Cranston is a Director of both Firebird and Macro, however,
this Transaction has been approved by the independent Directors of Firebird.
Firebird’s original agreement for the acquisition of the Wandanya tenements was established
with Mining Equities Pty Ltd in 2022. Under this agreement, a total shipment milestone
consideration of up to $500,000 was to be paid to Mining Equities Pty Ltd in instalments based
on export shipments or mine gate sales. Upon reaching the maximum milestone consideration,
a 1% royalty would be payable on an FOB basis for export shipments or a mine gate basis for
domestic sales. Mining Equities Pty Ltd has agreed to amend the original terms by removing the
$500,000 payable with the 1% royalty now payable on all export shipments and domestic sales.
This announce has been approved for release by the Board.
For further information contact:
Mr Peter Allen
Managing Director
+61 8 6245 9818
admin@firebirdmetals.com.au
Suite 38, 460 Stirling Highway
Peppermint Grove WA 6011
ABN: 24 610 035 535
Cameron Gilenko
Sodali & Co
0466 984 953
+61 8 6245 9818
admin@firebirdmetals.com.au
ASX:FRB
www.firebirdmetals.com.au
About Firebird Metals Limited
Firebird Metals is an advanced manganese developer focused on combining mining and
downstream processing with a dedication to the advancement of the EV battery sector.
The Company is currently progressing its unique China-focused lithium manganese iron
phosphate (LMFP) battery strategy, which will develop Firebird into a near-term producer of
high-purity, battery-grade manganese sulphate, a key cathode material in LMFP batteries for
electric vehicles.
Execution of this strategy will place Firebird at the forefront of manganese sulphate production,
at a time when the use and demand for manganese in batteries continues to rapidly grow. Due
to the low number of ASX-manganese developers and increasing use of LMFP by car
manufacturers, Firebird is in a strong position to benefit from this growing market and deliver
significant value to its shareholder base.
The Company also owns 100% of its project portfolio, located in the renowned East Pilbara
manganese province of Western Australia, which boasts a total Resource of 234Mt1,2, with
exciting exploration and development growth upside. The portfolio is led by the flagship Oakover
Project, which holds a Mineral Resource Estimate1 of 176.7 Mt at 9.9% Mn, with 105.8 Mt at
10.1% Mn in an Indicated category.
The Company is committed to generating sustainable long-term value and growth for
stakeholders, through the implementation of best practice exploration methods while
prioritising the well-being, health and environmental protection of its employees and
communities it operates in.
JORC Compliance Statement
This announcement contains references to Mineral Resource Estimates, which have been
reported in compliance with Listing Rule 5.8 and extracted from previous ASX announcements as
referenced.
The Company confirms that it is not aware of any new information or data that materially affects
the information previously reported and that all material assumptions and technical parameters
underpinning the Mineral Resource Estimates continue to apply and have not materially
changed.
1
See ASX announcement dated 23 March 2023: Indicated Resource of 105.8Mt at 10.1%; Inferred Resource of 70.9Mt at
9.6% for global Resource of 176.7 Mt at 9.9% Mn.
2
See ASX announcement dated 1 December 2021: Inferred Resource of 57.5 Mt at 12.2% Mn.
Suite 38, 460 Stirling Highway
Peppermint Grove WA 6011
ABN: 24 610 035 535
+61 8 6245 9818
admin@firebirdmetals.com.au
ASX:FRB
www.firebirdmetals.com.au
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