POSEIDON STRIKES DEAL FOR LANCEFIELD GOLD TAILINGS PROCESSING

Water Access Agreement Enhances Opportunities at Windarra

Poseidon Nickel Limited (ASX:POS) has inked a term sheet with Mt Morgans WA Mining, a subsidiary of Genesis Minerals Limited, to process up to 100,000 tonnes of Lancefield gold tailings. The agreement secures Mt Morgans access to 2.5GL of water per annum from the South Windarra open pit, facilitating the revival of operations at Laverton with a reliable water source.

Key Agreement Points:

  • Poseidon will receive $500,000 within 10 days post-agreement, followed by another $500,000 after Mt Morgans gets regulatory nods to access South Windarra’s water.
  • A profit-sharing arrangement is set for the Lancefield gold tailings trial, with Mt Morgans shouldering costs if no profit is realized.
  • The deal excludes Poseidon’s rights to Lancefield gold tailings or the Windarra gold and nickel tailings for which the Company continues to retain interest.

CEO Craig Jones highlighted the mutual benefits: “This is a great result for both Poseidon and Mt Morgans as we look to monetise our non-core assets and Mt Morgans progress with the restart of their operations at Laverton with a secure water supply and the opportunity to process the Lancefield gold tailings. The supply of water from South Windarra will not affect our development plans for the tailings recovery project at Windarra and allows for discussions to continue with third parties to advance various opportunities. The cost of the trial will be borne by Mt Morgans and any profit generated will be shared on an agreed basis, if successful.”

Read the full announcement

Goldman

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