Termination of Fifield Project Earn-in Agreement
Rimfire has two projects in the Lachlan Fold Belt of NSW, each of which are prospective for critical minerals – the Fifield Project and the Avondale Project. Activities at both projects have been funded by Golden Plains Resources Pty Ltd (GPR) under separate earn-in arrangements, which have the potential to see GPR earn a joint venture interest of up to 50.1% (in the case of the Fifield Project) and up to 75% (in the case of the Avondale Project).
Rimfire has issued a notice of termination to GPR in respect of the Fifield Project Earn-in Agreement, with the termination stated to take immediate effect.
The Company has exercised a termination right which has arisen as a result of a change of control of GPR following the judgement of the Victorian Supreme Court in: Resource Capital Ltd v Giovinazzo [2024] VSC 548 (Judgement), delivered 6 September 2024.
Given the Fifield Project Earn-in Agreement was terminated prior to GPR satisfying the earn-in requirements, GPR will have no interest in the Fifield Project going forward. The express terms of the Fifield Project Earn-in Agreement do not require the Company to repay to GPR any funding provided by it prior to termination in these circumstances.
The Fifield Project contains the Murga North Scandium Prospect where Rimfire has recently reported an Inferred Mineral Resource estimate of 21Mt @ 125 ppm Sc (4,050t Sc Oxide) as well as an Exploration Target of 100 to 200Mt at 100 to 200ppm Sc* (15 – 46Kt Sc Oxide) for the surrounding Murga area (See Rimfire ASX Announcement dated 9 September 2024)**.
Rimfire is considering its rights in relation to the Avondale Project Earn-in Agreement in light of the Judgement and is currently seeking further information from GPR.
The Avondale Project contains the Melrose Scandium Prospect where Rimfire has recently reported an Indicated and Inferred Mineral Resource estimate of 3Mt @ 240 ppm Sc (1,120t Sc Oxide) (See Rimfire ASX Announcement dated 9 September 2024)**.
Leave a Reply