Manhattan Raises A$1.6M, Advances Tibooburra JV and Chebogue Lithium Drilling
Manhattan Corporation has secured a pivotal Farm-In Agreement with Novo Resources for its Tibooburra Gold Project and gained surface access to progress drilling at its Chebogue Lithium Project in Canada, underpinning its exploration ambitions.
- Executed Farm-In and Joint Venture Agreement with Novo Resources for Tibooburra Northern Tenements
- Novo Resources to invest minimum A$1.5 million over two years to earn 70% interest
- Surface Access granted for Chebogue Lithium Project enabling imminent drilling
- Raised over A$1.6 million through entitlement offer and placements
- Closed quarter with a strong cash balance of A$2.78 million and no debt
Strategic Farm-In Agreement with Novo Resources
Manhattan Corporation Limited (ASX: MHC) has taken a significant step forward in its exploration strategy by executing a Term Sheet for a Farm-In and Joint Venture Agreement with Beatons Creek Gold Pty Ltd, a wholly owned subsidiary of Novo Resources Corporation. This agreement covers the Northern Tenements of Manhattan's Tibooburra Gold Project in northwestern New South Wales, an area known for its advanced, high-grade gold mineralisation.
Under the terms, Novo Resources will commit a minimum of A$1.5 million over two years to earn a 70% interest in precious and base metals within approximately 631 square kilometres of the Northern Tenements. The arrangement includes staged expenditure and share issuances to Manhattan, with an initial A$500,000 exploration spend and 500,000 Novo shares within 12 months, followed by a further A$1 million spend and 1 million shares in the subsequent year. Upon completion, the parties may form an unincorporated joint venture, with Manhattan free-carried to the completion of a positive Definitive Feasibility Study.
Advancing Lithium Exploration in Canada
Complementing its gold project progress, Manhattan's fully owned subsidiary, Continental Lithium Ltd, secured surface access rights for exploration at the Chebogue Lithium Project in Nova Scotia, Canada. This access, granted under Section 26 of the Mineral Resources Act, allows the company to commence drilling activities targeting spodumene-bearing pegmatite boulders identified at the Big Betty Prospect. Previous sampling has returned lithium oxide (Li2O) assays as high as 3.40%, highlighting the project's potential.
The Chebogue Project boasts a large landholding with over 70 kilometres of prospective lithium pegmatite strike, strategically located near deep-sea port facilities facilitating access to North American and European markets. The recent aeromagnetic survey has delineated multiple low magnetic response anomalies indicative of pegmatite bodies, setting the stage for targeted drill testing.
Financial Position and Capital Raising
Manhattan strengthened its financial footing during the December 2024 quarter, successfully raising approximately A$1.6 million through a non-renounceable pro-rata entitlement offer, shortfall placements, and a conditional placement to directors. The company ended the quarter with a robust cash balance of A$2.78 million and maintained a debt-free status, positioning it well to fund ongoing exploration activities.
Operational expenditure was carefully managed, with corporate and administrative costs totaling A$145,000 and exploration and evaluation expenditure at A$123,000, reflecting a strategic scaling of activities while focusing on advancing key projects and agreements.
Exploration Outlook and Market Implications
Looking ahead, Novo Resources plans to initiate fieldwork in February 2025 on the Tibooburra Northern Tenements, targeting the Clone and New Bendigo prospects, which have previously delivered impressive high-grade gold intersections. Manhattan’s retention of the Southern Tenements ensures continued exposure to a substantial land package of approximately 1,564 square kilometres.
Meanwhile, the Chebogue Lithium Project is poised for its first drilling campaign following the granting of surface access, a critical milestone after protracted negotiations. The project’s proximity to infrastructure and promising assay results could attract further investor interest as global demand for lithium intensifies.
Manhattan’s dual focus on gold and lithium exploration, supported by strategic partnerships and a solid balance sheet, underscores its potential to unlock value across multiple commodities in diverse jurisdictions.
Bottom Line?
Manhattan’s strategic partnerships and exploration advances set the stage for potentially transformative developments in gold and lithium assets.
Questions in the middle?
- Will Novo Resources proceed beyond the initial farm-in period to fully earn its 70% interest?
- What are the timelines and expected scale for drilling programs at both Tibooburra and Chebogue?
- How will Manhattan balance exploration funding between its gold and lithium projects amid evolving market conditions?