Lode Nets $3.75M and 115M Shares in Rapid in Webbs Consol Silver Deal

Strategic Divestment and Shareholding

Lode Resources Ltd has executed a binding agreement to divest its Webbs Consol Silver Project in northeast New South Wales to Rapid Critical Metals Limited. The deal includes a cash component of A$3.75 million, with A$3 million payable on completion and the remaining A$750,000 due 12 months later. In addition, Lode will receive 115 million shares in Rapid, representing a 15.3% stake based on Rapid’s current share count, alongside a 2% net smelter return royalty on the Webbs Consol asset.

This transaction marks a significant strategic move for Lode, allowing it to crystallise value from a high-grade silver resource while maintaining exposure to its future upside through equity and royalty interests.

Consolidation of Silver Assets

Rapid Critical Metals’ acquisition of Webbs Consol complements its existing holdings of the Webbs and Conrad silver deposits, all located in close proximity. This consolidation creates a substantial combined silver-dominant mineral resource base, with Lode’s maiden resource at Webbs Consol estimated at 32 million silver equivalent ounces at an impressive grade of 636 grams per tonne.

The proximity of these three high-grade deposits opens the door for unified mine planning, centralised processing, and potential operational synergies that could enhance the economic viability of the combined assets. Rapid is expected to pursue a cohesive development strategy, leveraging the scale and quality of this consolidated resource.

Strengthening Lode’s Financial Position and Focus

The cash proceeds from the divestment will materially bolster Lode’s balance sheet, providing the company with enhanced financial flexibility. This funding is earmarked to accelerate exploration and development activities at Lode’s flagship Montezuma antimony and silver project in Tasmania, as well as the Magwood antimony and Uralla gold projects in New South Wales’ New England Fold Belt.

Executive Chairman Andrew Van Heyst highlighted the transaction as a “win-win” scenario, noting that while Lode retains a royalty and a significant shareholding in Rapid, it can now focus on advancing its antimony assets amid a favourable market backdrop for this critical metal.

Next Steps and Market Implications

The deal remains subject to completion of due diligence, final documentation, and likely shareholder approval from Rapid, expected at an October general meeting. Lode plans to escrow its Rapid shares for 12 months before seeking to distribute them in-specie to its shareholders, though the timing and certainty of this distribution remain to be confirmed.

For investors, this transaction signals a broader trend of consolidation in the New England mining sector, aiming to unlock value through scale and operational efficiencies. Both companies’ progress in exploration and development will be closely watched as they seek to capitalise on historically strong silver and antimony markets.