Classic Minerals has agreed to acquire mining tenements comprising the Forrestania Gold Project (FGP) in Western Australia from Hannans’ wholly-owned subsidiary Reed Exploration.

Under the deal terms, Classic will pay A$50,000 ($31,537) as a non-refundable deposit to Reed Exploration.

Classic will also pay a further A$200,000 in cash and issue 500 million fully paid ordinary shares before the end of November 2023.

Furthermore, Classic will reimburse A$106,196 for amounts paid by Reed to maintain the mining tenements in good standing.

Classic said the transaction will provide rights to explore for gold and all other minerals including lithium and nickel on the Forrestania tenements.

Classic chairperson John Lester said: “This indeed is an exciting opportunity for our company. We now can proceed to exploit the gold resource on this tenement 100% instead of having only 80% of the gold rights. Dean Goodwin will also be able to explore for other minerals for the company’s benefit.”

The Forrestania Project is located on the Forrestania Greenstone Belt, which comprises some of the worlds’ highest-grade nickel mines as well as world-class lithium and gold deposits.

The deal, however, excludes tenements comprising the Kat Gap discovery, which are already owned by Classic.

Classic earlier acquired an 80% stake in the gold rights on the FGP tenements from a third party.

Reed Exploration holds the remaining 20% stake in the gold rights associated with the FGP tenements.

Hannans non-executive chairman Jonathan Murray said: “The disposal of these legacy Forrestania interests marks the final step in Hannans transitioning from a minerals explorer to becoming a European lithium-ion battery recycling business.

“With Mr Brett Salt starting in his role as our Australian-based CEO in the coming weeks, Hannans is now 100% focused on executing our strategy to become a meaningful player in the battery materials value chain."