The directors of Pilbara explorer Warwick Resources have announced the sale of its 100% owned Waite Kauri North nickel project to Proto Resources & Investments.
The Waite Kauri North lateritic nickel project is on a granted mining lease, located immediately to the north of GME Resources’ Waite Kauri lateritic nickel-cobalt project and about 20 km from Minara’s Murrin Murrin nickel operation near Leonora in Western Australia.
It is also adjacent to Poseidon’s Waite Kauri lateritic nickel-cobalt project.
A JORC compliant Inferred Mineral Resource of 3.9 million tonnes at 1.04% Ni, 0.04% Co, (representing 40,541 tonnes of contained nickel and 1,448 tonnes of contained cobalt) has previously been estimated for the project using a 0.7% Ni cut-off.
Since listing on the ASX in February 2007, the Company has identified iron ore targets on its existing tenure near Newman in the Pilbara region of Western Australia.
Atlas Iron Limited acquired a 19.9% stake in the Company during 2007.
Since this time, the Company has had continued iron ore exploration and, according to a company statement, the Board has decided to focus on iron ore exploration while examining ways of unlocking value on its other mineral assets.
According to the Company, the sale to Proto allows the Company to focus on its core assets and at the same time participate in any future exploration upside through its Proto shareholding.
The transaction is conditional only on completion of due diligence by Proto within 21 days and the purchase consideration is the issue by Proto of 4,000,000 fully paid ordinary shares to Warwick Resources.
The Company has agreed to pay a facilitation fee to a consultant for introducing and facilitating this transaction.
The fee is 10% of the transaction value to be paid in Warwick scrip on completion of the transaction.