Octava Minerals has amended its acquisition terms for the Byro REE Project, extending the deadline and replacing a share grant with performance rights tied to project milestones.
- Extension of Byro acquisition sunset clause to 31 March 2026
- Replacement of 2 million share grant with performance rights
- Performance rights contingent on scoping study publication
- Upcoming shareholder meeting planned for mid-March 2026
- Bioleaching testwork success underpins agreement variation
Background and Project Significance
Octava Minerals Ltd (ASX – OCT), a Western Australian explorer focused on critical minerals, has announced a key variation to its acquisition agreement for the Byro Rare Earth Elements (REE) Project. The Byro Project, notable for its potential in REEs and lithium, is a strategic asset within Octava’s portfolio that also includes copper, zinc, nickel, cobalt, and platinum group metals projects across Australia.
Details of the Agreement Variation
The variation follows encouraging bioleaching testwork completed in 2025 by independent consultants BiotataTEC and CSIRO, which demonstrated promising processing potential for the Byro material. In response, Octava and the project vendors agreed to extend the original 24-month sunset clause to 31 March 2026, allowing more time to satisfy the acquisition’s conditions precedent.
Additionally, the parties have replaced the previously agreed grant of 2 million Octava shares to the vendors with performance rights. These rights will convert into shares upon the publication of a scoping study or an equivalent higher-level mining study by an independent consultant. The performance rights carry a three-year expiry from the date of study completion, aligning vendor compensation more closely with project milestones rather than immediate share issuance.
Implications for Shareholders and Next Steps
To finalise these changes, Octava plans to convene a General Meeting of Shareholders in mid-March 2026. This meeting will seek approvals required under ASX Listing Rules and the Corporations Act, including those related to share issuance and related party transactions. The shift to performance rights may mitigate immediate dilution concerns for existing shareholders while maintaining vendor incentives linked to project progress.
Octava’s Managing Director and CEO, Bevan Wakelam, has highlighted the importance of these amendments in advancing the Byro Project’s development pathway. The company’s broader portfolio, spanning critical minerals essential for emerging technologies and clean energy, positions Octava as a notable player in Australia’s resource sector.
Looking Ahead
With the extended timeline and revised vendor compensation structure, Octava is poised to continue unlocking value from the Byro Project while managing shareholder interests prudently. The upcoming shareholder meeting will be a critical milestone, setting the stage for the next phase of exploration and development.
Bottom Line?
Octava’s strategic tweaks to the Byro deal set the stage for milestone-driven progress and shareholder scrutiny in 2026.
Questions in the middle?
- How will the performance rights impact Octava’s share capital and potential dilution?
- What are the expected timelines and outcomes for the scoping study milestone?
- How might the bioleaching results influence the project’s economic viability and future development?