Windarra Tailings Project and Water Access Agreement Update

Poseidon Nickel (ASX: POS) (“the Company”) advises that the conditional agreement entered with Mt Morgans WA Mining Pty Ltd (“Mt Morgans”), a wholly owned subsidiary of Genesis Minerals Limited (“Genesis”), for Mt Morgans to undertake a trial processing of up to 100,000 tonnes of Lancefield gold tailings through their Laverton processing facility and to have access to 2.5GL per annum of water from the South Windarra pit, has been terminated.

• During December 2023 Poseidon entered a conditional agreement with Mt Morgans WA Mining (Mt Morgans), a subsidiary of Genesis Minerals Limited, the key terms being:
  
  • Mt Morgans to undertake a processing trial of up to 100,000 tonnes of Lancefield gold tailings through their currently idled Laverton processing facility; and
  • Mt Morgans to access up to 2.5GL of water per annum from the South Windarra open pit over a 5 year period
• The agreement was subject to conditions precedent which were not satisfied or waived by the parties in the required time and consequently the agreement has been terminated
• The agreement entered into with Encore Minerals to develop the Windarra Gold and Nickel Tailings using Draslovka’s Glycine Leaching Technology is unaffected by the termination of the agreement with Mt Morgans

Importantly the agreement with Encore Minerals to develop the Windarra Gold and Nickel Tailings using Draslovka’s Glycine Leaching Technology is unaffected by the termination of the agreement with Mt Morgans. Encore Minerals intends to use proprietary Glycine Leaching Technology (GlyCatTM + GlyLeachTM) to process the Windarra gold and nickel tailings and potentially the Lancefield gold tailings. Refer ASX release dated 31 July 2024 titled “Poseidon enters agreement with Encore Minerals to develop the Windarra Tailings Project.”

Click here for the full ASX Release

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