Lode Secures A$3.75M Cash and A$8M Shares in Webbs Consol Sale to Rapid

Strategic Divestment Finalized

Lode Resources Ltd (ASX – LDR) has taken a significant step in reshaping its portfolio by executing full transaction documentation for the sale of its Webbs Consol silver project to Rapid Critical Metals Limited. This move, first flagged earlier this month, crystallizes a deal that will inject both cash and equity into Lode, while maintaining a royalty interest in the asset.

The transaction terms include an upfront payment of A$3 million, with a further A$750,000 payable after 12 months, alongside 115 million shares in Rapid currently valued at approximately A$8 million. These shares will be held in escrow for a year, underscoring a measured approach to the equity stake.

Royalty and Buyback Mechanism

In addition to the immediate financial benefits, Lode retains a 2% net smelter return royalty on the Webbs Consol project. This royalty provides ongoing exposure to the project's future production, with Rapid holding the option to buy back the royalty for A$2 million at any time. This structure balances Lode’s desire to monetize the asset while preserving upside potential.

Conditions and Approvals Ahead

Completion of the deal hinges on several conditions, including Rapid securing necessary ASX approvals, Lode obtaining releases of encumbrances on the assets, and a shareholder vote at Rapid expected in early November. These steps are standard but critical to ensuring regulatory compliance and shareholder alignment.

Funding Exploration Momentum

Lode’s leadership is clear about the strategic intent behind the divestment proceeds. Executive Chairman Andrew Van Heyst highlighted the opportunity to become a significant shareholder in Rapid, while redirecting capital to accelerate exploration at the Montezuma Silver & Antimony Project and the historic Magwood Antimony Mine Project. Managing Director Ted Leschke emphasized that the cash injection supports ongoing drilling programs and upcoming assay results, which could unlock further value in these critical mineral projects.

With simultaneous drilling underway and new exploration targets emerging in Tasmania, Lode is positioning itself to capitalize on the growing demand for silver and antimony, both vital to emerging technologies and green energy applications.

Looking Forward

As the market awaits the Rapid shareholder vote and subsequent transaction completion, investors will be watching closely how Lode leverages this capital to advance its pipeline. The balance of monetizing assets while maintaining exposure through royalties and equity stakes reflects a nuanced approach to growth and risk management in the mining sector.