What are the terms of the Sky Metals (ASX:SKY) divestment of the Iron Duke Project?

Sky Metals has signed a binding option agreement to sell its Iron Duke Copper-Gold Project to Locksley Resources (ASX:LKY) for a total value of $1.1 million. The deal starts with a non-refundable $100,000 cash fee for a nine-month option period.

Why is Sky Metals (ASX:SKY) selling the Iron Duke Copper-Gold Project?

Management is offloading the asset because it is considered "non-core" to their primary strategic focus. The divestment allows the company to prioritize capital and management resources toward its more advanced tin development assets at Tallebung and Doradilla.

How does this deal affect Sky Metals (ASX:SKY) shareholders?

The transaction provides immediate non-dilutive funding, meaning the company can raise capital without issuing new shares and diluting existing holders.

What assets are included in the Locksley Resources (ASX:LKY) acquisition?

Locksley Resources is acquiring an exclusive option for a 100% interest in Exploration Licences EL9191 and EL6064 in New South Wales. These licenses comprise the Iron Duke Project and are currently held by Sky’s subsidiary, Balmain Minerals Pty Ltd.

What are the specific milestones for the final $500,000 payment to Sky Metals (ASX:SKY)?

The final $500,000 payment is contingent on one of two catalysts: the delineation of a JORC-compliant Mineral Resource of at least 3.0Mt at a minimum grade of 1.0% copper equivalent, or the sale of the project to a third party.

What is the strategic advantage for Locksley Resources (ASX:LKY) in this deal?

For Locksley Resources, this acquisition allows for the consolidation of the Iron Duke Project with its existing "complementary and adjacent" copper-gold assets. By securing these exploration licenses, Locksley expands its footprint in a prospective region of New South Wales.

Sky Metals sells Iron Duke Project For $1.1M

Written by Brie CarterPublished May. 14 2026Last Updated May. 14 2026

Sky Metals (ASX:SKY) entered into a binding option agreement for the divestment of its non-core Iron Duke Copper-Gold Project in New South Wales.

The transaction carries a total value of $1.1 million and involves Locksley Resources (ASX:LKY) securing an exclusive option to acquire a 100% interest in the site.

The project area, comprising exploration licences EL9191 and EL6064, is currently held by Sky’s wholly-owned subsidiary, Balmain Minerals.

The financial structure of the deal includes a non-refundable $100,000 cash option fee for a nine-month period, followed by an initial consideration of $500,000 upon exercise—payable in cash, Locksley shares, or a combination of both.

A final $500,000 milestone payment is triggered upon either the delineation of a JORC-compliant resource of at least 3.0Mt at 1.0% copper equivalent or the future sale of the project.

This divestment aligns with Sky’s overarching strategy to prioritise management focus and capital towards its advanced tin-development assets at Tallebung and Doradilla.

By offloading the early-stage Iron Duke asset, the company aims to secure immediate non-dilutive funding while maintaining exposure to the project’s exploration upside through milestone-linked payments.

At the time of reporting, the share prices of Sky Metals and Locksley Resources were $0.22 and $0.14, respectively.