Sky Metals Ltd. will divest its Iron Duke copper-gold project in New South Wales as it prioritises its advanced tin development assets at Tallebung and Doradilla.
The company has entered into a binding option agreement with Locksley Resources in a deal valued at AU$1.1 million.
While Iron Duke is considered highly prospective, Sky has categorised the project as non-core to its current focus of becoming a major tin producer.
Under the terms of the agreement, Sky’s wholly-owned subsidiary, Balmain Minerals, has granted Locksley an exclusive nine-month option to acquire a 100 per cent interest in the project.
The deal includes an immediate AU$100,000 non-refundable option fee, followed by an initial consideration of $500,000 upon exercise, payable in cash, Locksley shares, or a combination of both.
Sky has also secured a AU$500,000 milestone payment, triggered upon the delineation of a JORC-compliant mineral resource of at least three million tonnes at a minimum grade of 1 per cent copper equivalent, or if the project is sold to a third party.
The divestment is a win-win for both companies. For Locksley, the acquisition offers the chance to consolidate Iron Duke with its existing and complementary copper-gold assets in the region. For Sky Metals, the deal provides immediate, non-dilutive funding and removes the holding costs associated with early-stage exploration.
Sky Metals said the transaction reflects a disciplined and value-focused approach to portfolio optimisation while preserving shareholder value, noting that the move ensures management’s attention remains firmly on the advanced tin projects.
With tin prices remaining resilient amid global supply constraints, Sky’s pivot toward its development-ready assets underscores its commitment to transitioning from an explorer to a producer in the critical minerals space.
