Rapid Critical Metals to Pay A$3.75M Plus 115M Shares for Webbs Consol

Strategic Acquisition Bolsters Silver Portfolio

Rapid Critical Metals Limited has taken a decisive step to expand its footprint in the Australian silver mining sector by entering into a sale and purchase agreement to acquire the Webbs Consol Silver Project from Lode Resources Limited. Located in northeast New South Wales, this project is recognized as one of the highest-grade silver assets in the country, offering Rapid a substantial increase in both resource scale and quality.

Deal Structure and Consideration

The acquisition deal involves an initial cash payment of A$3 million at completion, followed by a further A$750,000 payable 12 months later. In addition, Rapid will issue 115 million new shares to Lode Resources, which will be subject to a voluntary escrow period of one year. This share issuance not only aligns the interests of both companies but also reflects the strategic value Rapid places on the asset. Furthermore, the agreement includes a 2% net smelter return royalty on all mineral products extracted from the project, with Rapid retaining the option to repurchase this royalty for A$2 million at any time.

Shareholder Approval and Next Steps

Completion of the transaction hinges on customary conditions, most notably the approval of Rapid’s shareholders at an Extraordinary General Meeting (EGM). The company is preparing to dispatch the Notice of EGM shortly, outlining the details and rationale behind the acquisition. Managing Director Byron Miles expressed enthusiasm about the deal, emphasizing the project's high-grade resource and the opportunity to build on the groundwork laid by Lode Resources. Rapid plans to initiate further drilling campaigns aimed at expanding the silver resource base, signaling a commitment to growth and value creation.

Market and Strategic Implications

This acquisition marks a significant milestone for Rapid Critical Metals, positioning the company as a more prominent player in the silver mining sector. By consolidating a high-grade asset, Rapid not only enhances its resource portfolio but also strengthens its appeal to investors seeking exposure to quality silver projects. The inclusion of a royalty with a buyback option provides flexibility in managing future cash flows and capital allocation. However, the market will be closely watching the outcome of the shareholder vote and the company’s ability to deliver on its exploration ambitions.