Loyal Metals has secured full ownership of the Highway Reward Copper-Gold Mine and progressed its North American lithium projects, while moving forward with a A$79.1 million cash takeover by PT Bumi Resources.
- Highway Reward acquisition completed with strong drill results
- North American lithium projects show promising grades and geophysics
- Scheme Implementation Deed signed with PT Bumi Resources for A$0.45 per share
- Cash position at A$2.16 million, focused spending on Highway Reward
- Scotty Lithium Project partially sold, retaining 49% interest
Highway Reward Acquisition Unlocks High-Grade Copper-Gold Potential
Loyal Metals (ASX:LLM) has cemented its position in Queensland’s copper-gold space by exercising its option to acquire 100% of the Highway Reward Copper-Gold Mine, a past producer boasting some of the world’s highest-grade copper deposits. The mine, previously yielding 3.65 million tonnes at 5.7% copper and 260,000 ounces of gold at 4.5 g/t, had lain dormant since 2005 despite copper and gold prices soaring by approximately 680% and 1,256% respectively since the 1997 feasibility study.
The company’s recent drilling beneath the historic open pit has confirmed a large, continuous Volcanogenic Massive Sulphide (VHMS) system, with intersections such as 179 metres at 1.47% copper equivalent (CuEq), including intervals hitting 5.97% CuEq. These results underpin the scale and continuity of the mineralised system and suggest significant potential for resource growth beyond previous mining depths of 220 metres (open pit) and 390 metres (underground).
Complementing the drilling, Loyal Metals has conducted extensive geophysical surveys, 3D induced polarisation, magnetotellurics, gravity, and drone-based LiDAR/magnetics, aimed at mapping sulphide chargeability and imaging deep conductive structures associated with the VHMS system. This comprehensive approach provides a robust technical foundation for advancing the project.
North American Lithium Projects Show Robust Grades and Structural Potential
On the lithium front, Loyal Metals continues to build momentum across its North American portfolio. The Trieste Lithium Project in Quebec has delivered world-class spodumene grades from three drilled dykes, with highlights including 31.8 metres at 2.2% Li2O and tantalum mineralisation. A sophisticated Mobile Magnetotellurics (Mobile MTm) survey covering 77 square kilometres has revealed significant inferred extensions of lithium-bearing pegmatites to depths exceeding 300 metres, identifying three distinct high-resistivity trends validated by 41 drillholes.
Meanwhile, the Hidden Lake Lithium Project in Canada’s Northwest Territories has expanded its known mineralised strike length by 44% to 3,250 metres, with drilling intercepts consistently hitting high-grade spodumene pegmatite. Metallurgical testwork has confirmed the potential for producing a high-grade lithium concentrate (6.11% Li2O) with minimal losses, bolstering the project’s development prospects.
In Nevada, the Scotty Lithium Project saw a strategic partial divestment with a 51% stake sold to Desert Minerals Limited (ASX:DSM) as part of DSM’s IPO. Loyal Metals retains a 49% interest. The project’s Exploration Target ranges from 460 to 837 million tonnes at around 1,150 ppm lithium, although resource estimation remains conceptual at this stage.
Scheme of Arrangement with PT Bumi Resources Progresses
Corporate developments took centre stage as Loyal Metals entered a Scheme Implementation Deed with Indonesia’s PT Bumi Resources Tbk in April 2026. The agreement sets a cash acquisition price of A$0.45 per share, valuing Loyal Metals at approximately A$79.1 million. This represents a significant premium and remains subject to shareholder, court, and regulatory approvals.
During the quarter, the company’s focus shifted to advancing the Scheme implementation process, including preparation of documentation and satisfying conditions precedent. Cash reserves stood at A$2.16 million as of 30 June 2026, with exploration expenditure concentrated primarily on the Highway Reward project. Operating cash flows are expected to remain limited pending Scheme completion, with no plans for further capital raising.
Financial Position and Outlook
Loyal Metals reported A$337,000 spent on exploration and evaluation during the quarter, mainly at Highway Reward, alongside A$187,000 in payments to related parties. The company’s net cash outflow from operating activities was A$1.44 million for the quarter. Despite this, the balance sheet remains stable with a cash position sufficient to cover corporate obligations through to the anticipated Scheme completion.
With the acquisition of Highway Reward now complete and lithium projects progressing on multiple fronts, Loyal Metals is positioned at a pivotal juncture. The outcome of the PT Bumi Resources Scheme will be a key determinant of the company’s strategic direction and shareholder value in the near term.
Bottom Line?
Loyal Metals stands at a strategic crossroads, with high-grade copper-gold assets and lithium projects poised for value creation, contingent on the PT Bumi takeover outcome.
Questions in the middle?
- Will PT Bumi Resources secure shareholder and regulatory approval to complete the Scheme?
- How will Loyal Metals prioritise development between its copper-gold and lithium assets post-acquisition?
- What further exploration results might emerge from the Highway Reward VHMS system to underpin resource upgrades?