Rimfire’s Cowal Divestment Risks Narrowing Its Mineral Portfolio

Strategic Divestment of Cowal Project

Rimfire Pacific Mining has taken a decisive step to streamline its portfolio by entering into an Option to Purchase Agreement with Copper Search Limited for its Cowal Copper Gold Project in central New South Wales. The agreement grants Copper Search an exclusive six-month window to conduct due diligence and decide whether to acquire the project, with the option extendable by up to three months for additional fees.

The deal includes milestone payments totaling up to $700,000, payable in cash or shares at Copper Search’s discretion, contingent on key developments such as resource announcements and production milestones. This structure provides Rimfire with a potential financial upside while transferring operational responsibilities to Copper Search.

Refocusing on Scandium in the Fifield District

Rimfire’s Managing Director, David Hutton, emphasized that divesting Cowal allows the company to sharpen its focus on building a critical mass of scandium resources within the Fifield District, known as Australia’s scandium epicenter. This move comes at a time when global scandium supply is under pressure due to recent Chinese export restrictions, positioning Rimfire to become a secure, long-term supplier of this critical mineral to Western markets.

The Fifield Scandium District holds significant promise given Rimfire’s extensive landholdings and the growing strategic importance of scandium in advanced technologies and clean energy applications. By concentrating efforts here, Rimfire aims to accelerate development and capitalize on rising demand.

Conditional Factors and Next Steps

The transaction is subject to Sandfire Resources Limited waiving its right of first refusal on one of the project’s tenements, a key condition precedent to completion. Copper Search’s due diligence outcomes and any forthcoming JORC Mineral Resource Estimates will be critical milestones to watch, as they trigger further payments to Rimfire.

For Copper Search, acquiring Cowal represents an opportunity to expand its copper-gold portfolio, while Rimfire’s divestment signals a strategic pivot towards critical minerals with potentially higher long-term value and geopolitical significance.