Rapid Critical Metals Expands Silver Platform with Webbs Consol Acquisition from Lode Resources

Rapid Critical Metals (ASX: RCM) has taken a major step in its plan to create a regional silver platform by entering into a binding agreement with Lode Resources (ASX: LDR) to acquire 100% of the Webbs Consol project in northeast New South Wales.

The deal will see Rapid Critical add Webbs Consol’s approximately 32 million ounces of silver equivalent to its Webbs and Conrad deposits to create a combined mineral resource in the vicinity of 67Moz silver equivalent with an overall grade of around 400g/t.

Rapid Critical will pay Lode an initial consideration of $3 million in cash, with a further $0.75m payable 12 months post-completion along with 115 million new RCM shares and a 2% net smelter return (NSR) royalty.

Highest ASX Silver Grade

Rapid Critical managing director Byron Miles said that the “pivotal” acquisition would give RCM the highest silver equivalent grade of any ASX-listed company.

“The transaction not only secures a contiguous silver corridor with outstanding geological prospectivity, but also opens up exciting potential for new discoveries in an area that has seen limited systematic drilling,” Mr Miles said.

“The exceptional high-grade hits already achieved at Webbs Consol underscore the quality of the mineralisation and the upside ahead.”

Rapid Critical is currently refining its plans to grow the total resources of the three assets – which sit within 12 kilometres of each other – via a unified strategy that takes advantage of the obvious synergies, as well as nearby infrastructure.

The current silver fundamentals are also providing a favourable backdrop for accelerated development.

Win/Win for Buyer and Seller

Lode executive chair Andrew Van Heyst said the divestment was a “compelling win-win for Lode and Rapid shareholders, and a good example of logical consolidation activity in the re-emerging New England mining sector.”

He added that the way the divestment was structured would allow Lode to benefit from the consolidation of a significant silver-dominant mineral resource and extensive exploration licences, while focusing on its own exploration activities.

“Lode can deploy cash to be received from this transaction to continue our work on Montezuma and Magwood,” he said.

“With the western world increasingly looking for new sources of antimony supply and a commensurately strong antimony price, we are very excited about the likely news flow from these assets across the balance of the year.”