Rapid Lithium’s $6.5M Silver Deal Faces Arsenic and Funding Tests

Strategic Acquisition in NSW Silver Belt

Rapid Lithium Limited (ASX: RLL) has taken a decisive step to broaden its critical minerals portfolio by entering into a Share Purchase Agreement to acquire two established silver projects in New South Wales. The Conrad and Webbs Silver Projects, located within the prolific New England Fold Belt, collectively hold an estimated 34.9 million silver equivalent ounces of high-grade silver assets. This acquisition, valued at A$6.5 million in cash and shares, marks Rapid Lithium’s significant entry into the silver mining sector.

The Webbs Silver Project boasts a JORC 2012 Mineral Resource Estimate of 2.2 million tonnes at 205 grams per tonne silver equivalent, containing 14.2 million ounces of silver equivalent. Historically, Webbs was a high-grade silver mine with production of 55,000 tonnes at an exceptional grade of 710 grams per tonne silver. Meanwhile, the Conrad Silver Project is recognized as the largest historic silver producer in the NSW section of the New England Fold Belt, with past production of 3.5 million ounces at around 600 grams per tonne silver and notable by-products including lead, zinc, copper, and tin.

Unlocking Untapped Potential

Neither project has seen modern exploration or drilling in over a decade, presenting Rapid Lithium with a compelling opportunity to rapidly unlock additional value. The company plans to initiate targeted geophysical surveys, drilling, and metallurgical studies at Webbs starting June 2025, with a dedicated budget of A$2.5 million. Conrad’s exploration activities are slated to commence in the September quarter, focusing on resource upgrades and metallurgical reviews, supported by an initial budget of A$500,000.

Rapid Lithium’s Managing Director, Martin Holland, expressed enthusiasm about the acquisition, highlighting the strong silver market and the quality of the assets. The company intends to leverage modern exploration techniques to expand and upgrade the existing JORC Mineral Resource Estimates, aiming to deliver new discoveries and enhance project economics.

Funding and Next Steps

To finance the acquisition and subsequent development programs, Rapid Lithium will conduct an equity capital raise targeting at least A$7 million through an institutional placement. Joint Lead Managers Foster Stockbroking and GBA Capital have been appointed to manage the placement. The capital raised will cover the cash component of the acquisition and fund exploration and development activities at both silver projects.

Completion of the transaction is contingent upon several conditions, including shareholder approvals, regulatory consents, and successful capital raising. Rapid Lithium has scheduled a general meeting for shareholders in late June 2025 to seek approval for the transaction and related share issuance.

Broader Portfolio and Market Context

This acquisition diversifies Rapid Lithium’s portfolio beyond its existing lithium assets in the United States and Canada, which are currently managed with cost efficiency in mind due to subdued lithium prices. The addition of high-grade silver projects positions the company to benefit from a robust silver market, which has seen prices well above those used in previous resource estimations.

While the projects come with promising metallurgical test results indicating strong recoveries of silver and base metals, challenges remain, particularly concerning arsenic levels in concentrates that require further investigation. Rapid Lithium’s approach to exploration and development will be closely watched by investors eager to see how these assets integrate into the company’s growth strategy.