Key details of the agreement between Win Metals and Auric Mining Ltd

Win Metals Ltd (ASX: $WIN) has successfully executed a Binding Term Sheet with Auric Mining Ltd for the partial sale of its nickel, lithium, and other associated metals rights to a depth in relation to an excised area within M15/87, referred to as Munda. The transaction nets a minimum $1.2m to WIN over the next 12 months, with consideration payable by Auric in stages. The deal achieves key objectives for both parties, providing WIN with short-term value realization and divesting lower value or non-key tenements, while offering Auric a clear runway for the proposed development of its Munda Gold Project.

Executive commentary on the agreement

Our Munda nickel resource doesn't feature in the short to medium term horizon for development as part of our larger Mt Edwards Project. The nickel resource lies predominantly below the level divested in favour of our gold rights partner Auric. This deal achieves key objectives for both parties in realizing value for WIN in the short term and divesting ourselves of some lower value or non-key tenements whilst providing Auric a clear runway for the proposed development of its Munda Gold Project. A win-win for both parties. We have done a logical deal whilst retaining access to the greater proportion of the nickel mineralization and depth extensions which exist below the -150mRL from surface exclusion zone and retain our 100% interests in nickel and lithium over greater than 50% of the mining tenement in question. A clear and sensible deal to allow both co-tenants to carry on with their respective businesses minimizing interference/interplay. Preserving the value of our nickel project remains foremost in our plans, however, in the case of Munda, the remaining resource will, as a result of this transaction, ultimately be able to be accessed at a much lower capital cost and be available for exploitation in a timeframe that more fits an anticipated appreciation of the underlying commodity value and our longer-term view for project development.

Summary of the agreement and outlook

The agreement between Win Metals and Auric Mining Ltd has resulted in the divestment of nickel and lithium rights to Auric, yielding a minimum of $1.2m for WIN over the next 12 months. This transaction allows WIN to realize short-term value and divest lower value or non-key tenements, while providing Auric a clear pathway for the proposed development of its Munda Gold Project. The deal has been described as a win-win for both parties, with WIN retaining access to a significant proportion of the nickel mineralization and depth extensions. Looking ahead, the agreement positions WIN to preserve the value of its nickel project and allows for the remaining resource to be accessed at a much lower capital cost, aligning with the company's longer-term view for project development.