Summit (ASX:SUM) buys into Odessa success

Summit Minerals (ASX: SUM) has traded its subsidiary Bow Island Resources’ prospective E09/2435 REE-Lithium tenement in Western Australia’s Gascoyne with Odessa Minerals (ASX:ODE)  in exchange for a package of 8 million listed and unlisted shares, plus the retention of 1.5 per cent net smelter royalty.

The sale aligns with the Company’s strategy of monetising non-core mineral exploration assets. It focuses on potentially colossal extractable REE at its 100% owned Stallion Project east of Kalgoorlie and portfolio of prospective battery mineral exploration opportunities in Australia’s Tier-1 mining jurisdiction.

Australian project locations

“The Directors consider that the sale of the Lyndon Project is in the Company’s best interests and will allow the Company to concentrate on alternative assets to increase value for the benefit of all shareholders whilst remaining exposed to any potential discovery Odessa may make on the broader Lyndon REE/Lithium Project,” The Company said.

Price Action

The Company’s ASX-listed shares are 14.5c in early morning trade.

The acquisition terms are as follows –

Odessa Minerals Limited is to acquire 100% of the Lyndon tenement comprising granted Exploration Licence E09/2435 from Bow Island Resources Pty Ltd (a 100%-owned subsidiary of Summit Minerals Limited) for the following consideration:

• 6,000,000 fully paid ordinary shares in the capital of Odessa, to be issued at the deemed issue price of $0.018 per share
• 2,000,000 unlisted options in fully paid ordinary shares of Odessa with an exercise price of $0.04 per option and expiring 31 December 2026
• 1.5% net smelter royalty