Loyal Metals Completes Highway Reward Mine Acquisition and Agrees A$79M Takeover

Highway Reward Acquisition Finalised Amid Strong Drill Results

Loyal Metals Ltd (ASX:LLM) has exercised its option to fully acquire the Highway Reward Copper-Gold Mine in Queensland, a project renowned for its exceptional grades and historic production. The acquisition, executed after securing a binding option agreement in July 2025, transfers granted mining leases and assets to Loyal’s wholly owned subsidiary, subject to customary conditions.

This move marks a pivotal step for Loyal Metals, unlocking access to one of the world’s highest-grade copper mines, with past production of 3.65 million tonnes at 5.7% copper and 260,000 ounces of gold at 4.5 grams per tonne. Notably, no exploration had taken place on the granted leases since 2005 despite copper and gold prices rising dramatically since the 1997 feasibility study. The company now aims to capitalise on substantial unmined mineralisation and exploration upside both along strike and at depth, beyond historic mining limits.

Drilling results from the initial holes at Highway Reward have confirmed a large, continuous Volcanogenic Massive Sulphide (VHMS) copper-gold-silver system beneath the eastern wall of the historic open pit. Assays from drillhole 25HRDD001 revealed 145 metres at 1.37% copper equivalent (CuEq), while 25HRDD002 intercepted 86 metres at 2.34% CuEq with multiple high-grade lenses. A third hole, completed post-quarter, returned 179 metres at 1.47% CuEq, affirming the scale and continuity of the mineralised system. These findings support a bulk mining opportunity that contrasts with the narrower lenses mined historically.

Such drilling success follows extensive data verification of approximately 122,000 metres of historical drilling, which validated legacy high-grade intercepts and provided a reliable geological foundation for ongoing exploration and resource evaluation. Complementary geophysical surveys, including gravity, 3D induced polarisation, magnetotellurics, and drone-based LiDAR/magnetics, have further delineated the deposit and identified new targets for follow-up.

The Highway Reward acquisition and exploration progress position Loyal Metals at a strategic inflection point in its copper-gold portfolio, with potential to redefine resource scale and project economics. This development aligns with the company’s broader growth strategy in Tier 1 jurisdictions.

Lithium Projects Advance in North America

Alongside its copper-gold ambitions, Loyal Metals continues to develop its lithium portfolio across North America. The Trieste Lithium Project in Quebec hosts multiple spodumene pegmatite dykes with confirmed world-class lithium grades over thick intervals, including 40 metres at 1.2% Li2O and 31.8 metres at 2.2% Li2O. Innovative geophysical surveys using Mobile Magnetotellurics have revealed significant extensions of these pegmatites, supporting further exploration potential.

At the Hidden Lake Lithium Project in the Northwest Territories, the company has delineated seven spodumene dykes extending over 3.25 kilometres, with drill intercepts up to 1.81% Li2O. Metallurgical testwork has produced high-grade lithium concentrate with minimal impurities, underpinning the project’s development prospects.

In Nevada, Loyal Metals completed the demerger and sale of a 51% interest in the Scotty Lithium Project to Desert Minerals Limited (ASX:DSM), which is now advancing exploration near Tesla’s Nevada Gigafactory. The project hosts a substantial Exploration Target with near-surface lithium mineralisation, although resource estimates remain conceptual pending further drilling.

Corporate and Financial Update Amid Acquisition Proposal

In a major corporate development, Loyal Metals entered a Scheme Implementation Deed with Indonesia’s PT Bumi Resources Tbk, under which Bumi proposes to acquire 100% of Loyal Metals by way of a court-approved scheme of arrangement at A$0.45 per share. This values the company at approximately A$79.1 million, representing a premium of over 40% to recent trading prices. The scheme is subject to shareholder, court, and regulatory approvals, with the meeting expected in early August 2026 and implementation anticipated mid-August.

The Loyal Metals board unanimously recommends the scheme to shareholders, pending an independent expert’s favourable opinion and the absence of a superior proposal. The deal includes provisions for Bumi to provide an environmental bond of over A$8 million related to the Highway Reward project acquisition, highlighting environmental and financial risk management.

At quarter end, Loyal Metals reported A$3.125 million in available funding, down from prior periods due to exploration expenditure primarily on the Trieste and Hidden Lake lithium projects. The company confirmed it will limit comprehensive exploration in the next quarter pending completion of the acquisition. Payments to related parties amounted to A$105,000 for the period.

These developments follow a series of announcements detailing the Highway Reward acquisition and drilling success, as well as the strategic lithium asset progression. The company’s financial and operational position now hinges on the successful completion of the PT Bumi Resources transaction and subsequent project advancement.

Loyal Metals’ recent progress and corporate moves place it at a critical juncture, balancing near-term shareholder value realisation with long-term resource development. The unfolding acquisition and ongoing exploration results will be key factors shaping the company’s trajectory in the coming months.

Investors might recall the company’s earlier confirmation of the Highway Reward acquisition and drilling assays that underpin this report’s findings, as detailed in the full ownership exercise and large-scale VHMS confirmation announcements. The current scheme proposal follows closely on the heels of the cash takeover agreement that values the company at a notable premium, underscoring the market interest in Loyal Metals’ assets and potential.