Olympio Secures $25K Upfront Fee in $150K Option Deal for Halls Creek Tenements
Olympio Metals has entered an Option Agreement to sell its remaining Halls Creek tenements to Clutch Group, enabling a sharper focus on its flagship Dufay Cu-Au Project in Quebec.
- Option Agreement signed with Clutch Group for three Halls Creek tenements
- Clutch commits to $80,000 minimum exploration expenditure during due diligence
- Upfront exclusivity fee of $25,000 paid by Clutch
- Potential option fee payments totaling $150,000 upon exercise
- Olympio shifts focus to Dufay Cu-Au Project drilling commencing soon
Strategic Divestment of Non-Core Assets
Olympio Metals Limited (ASX:OLY) has taken a decisive step to streamline its portfolio by entering into an Option Agreement with Clutch Group Pty Ltd for the sale of its remaining three tenements in the Halls Creek region of Western Australia's Kimberley. This move aligns with Olympio's strategic pivot towards its more promising Dufay copper-gold project in Quebec, Canada, where drilling is set to commence imminently.
Terms of the Option Agreement
The agreement grants Clutch an exclusive option to acquire exploration licences E80/5034, E80/5154, and E80/5220, along with all associated data. Clutch has already paid an upfront exclusivity fee of $25,000 to secure the due diligence period, which extends until 30 June 2025. During this time, Clutch is obligated to maintain the tenements in good standing and commit a minimum of $80,000 in exploration expenditure.
If Clutch exercises the option, it will pay Olympio a combined option fee of $150,000, apportioned as $100,000 for E80/5034, $30,000 for E80/5154, and $20,000 for E80/5220. These fees will be adjusted if any tenements are surrendered or expire during the due diligence period.
Performance Payments and Future Upside
Beyond the option fee, Olympio retains potential upside through performance payments tied to exploration success. Specifically, Olympio will receive $100,000 upon delineation of a JORC-compliant measured mineral resource of at least 50,000 ounces of gold at a minimum grade of 1.0 g/t Au, and a further $100,000 upon a formal decision to mine. These milestones provide a balanced risk-reward framework, allowing Olympio to benefit from future discoveries without ongoing capital commitments.
Focus on the Dufay Cu-Au Project
Olympio's Managing Director, Sean Delaney, emphasized the company's commitment to advancing the Dufay project, describing the Halls Creek tenements as non-core assets. The imminent drilling program in Quebec marks a critical phase for Olympio, potentially unlocking significant value in a jurisdiction known for its mining-friendly environment and robust infrastructure.
This divestment not only frees up capital and management bandwidth but also signals confidence in the Dufay project's prospects. Meanwhile, Clutch Group's involvement ensures continued exploration activity in Halls Creek, preserving the region's potential for future development.
Market and Strategic Implications
Olympio's decision reflects a broader trend among junior miners to concentrate resources on flagship projects with higher upside potential. The structured nature of the Option Agreement mitigates immediate financial risk while preserving optionality for future gains. Investors will be watching closely as Clutch undertakes due diligence and as Olympio progresses with its Canadian drilling campaign.
Bottom Line?
Olympio’s sale of Halls Creek tenements marks a clear strategic shift, setting the stage for potential breakthroughs at Dufay.
Questions in the middle?
- Will Clutch Group exercise the option after due diligence, and what exploration results will emerge?
- How will early drilling results from the Dufay Cu-Au Project influence Olympio’s valuation and investor sentiment?
- Could Olympio pursue further asset rationalisation to sharpen its focus on high-impact projects?
