Olympio Metals subsidiary Rocktivity has reached an agreement to divest the Mulwarrie Project in Western Australia (WA) to Orminex, a Labyrinth Resources subsidiary, for a potential sum of up to A$1.375m.

The deal grants Orminex a three-month option to acquire the project for A$50,000.

If Orminex decides to proceed with the purchase, it will pay Olympio an additional A$100,000 in cash and issue A$225,000 worth of Labyrinth Resources shares.

Furthermore, a payment of A$1m, either in cash or shares, will be made to Olympio upon the confirmation of a gold resource exceeding 250,000oz at a minimum grade of 1.4g per tonne.

The option agreement encompasses several tenements wholly owned by Rocktivity, including E30/511, E30/512, E30/513, P30/1141, P30/1142 and P30/1143.

In a related development, Liontown Resources has informed Olympio that it will be withdrawing from the farm-in agreement concerning these tenements at the Mulwarrie Project.

Olympio Metals managing director Sean Delaney said: “This agreement is a good outcome for Olympio, recognising value for the company and allowing it to focus on its other assets whilst retaining exposure to exploration success at Mulwarrie.

“Labyrinth is consolidating their land position around Menzies and aggressively focusing on gold exploration in the area and we wish them all the best. We would also like to thank Liontown for their work on the Mulwarrie Project during the time of the farm-in agreement.”

In January this year, Labyrinth Resources completed the sale of its Labyrinth and Denain gold projects in the Abitibi region of Quebec, Canada, for a cash consideration of A$5.23m.

This strategic decision forms part of the company’s shift towards increasing shareholder value by focusing on the exploration and development of its Comet Vale tenement package in WA.

Labyrinth acquired the Canadian assets in September 2021 as part of a project acquisition agreement with G.E.T.T. Gold.