Trek Metals signs agreement with AEFI over Hendeka Manganese Project

Trek Metals Limited (ASX:TKM) has entered into an option and acquisition agreement with US-based Advanced Energy Fuels, Inc. (AEFI) for Trek's non-core Hendeka Manganese Project in the Pilbara region of Western Australia. AEFI may exercise the option to acquire the Hendeka Project by paying A$450,000 in cash as part of a proposed US listing and issuing to Trek 8,000,000 in shares in AEFI or that number of AEFI Shares which represents, at the listing of AEFI, not less than 20%. AEFI will also spend A$2 million on advancing the Hendeka Project and may elect to exercise the option by 30 September 2027.

Trek CEO's Perspective on the Agreement

Trek's CEO Derek Marshall expressed, 'The deal is structured in a way that will give Trek significant exposure to future upside from the exploration and development of Hendeka via a 20 per cent shareholding. We are excited about our current drilling program at the Christmas Creek project, which is thought to host a potential extension of the prolific Granites-Tanami Orogen, with metasediments in the area showing a correlation to the geological sequences that host Newmont's globally significant Tanami Gold Mine. Newmont generated numerous high priority targets that we are following up, both via additional surface geochemistry and drilling.'

Summary of the Option and Acquisition Agreement

Trek Metals Limited has signed a Binding Option and Acquisition Agreement with Advanced Energy Fuels, Inc. to explore and develop Trek's Hendeka Manganese Project in the Pilbara region of Western Australia. The agreement allows AEFI to acquire the Hendeka Project by making certain payments and sole funding A$2 million of exploration expenditure. This move aligns with Trek's strategic focus on its high-priority Christmas Creek Gold Project in the Kimberley region of WA and its McEwen Hills Niobium Project, located along strike from WA1's world-class Luni discovery. The CEO's commentary reflects the company's excitement about the current drilling program at the Christmas Creek project and the potential it holds. The material terms of the Option and Acquisition Agreement include AEFI paying an option fee of A$50,000 for an exclusive option to acquire the Hendeka Project, with the option to exercise the acquisition anytime up until 30 September 2027, subject to meeting the payments and exploration expenditure set out in the agreement. Additionally, AEFI is required to pay A$450,000 on the proposed listing of AEFI on or before 30 September 2025 and spend at least A$2,000,000 on the Hendeka Project. Trek also has the right but not the obligation to appoint one Director to AEFI as well as customary participation and information rights in AEFI. The Option and Acquisition Agreement contains other customary terms for an agreement of this nature including representations and warranties and termination rights.