Poseidon Nickel announced the termination of its conditional agreement with Mt Morgans WA Mining, a subsidiary of Genesis Minerals (ASX:GMD).
The agreement, initially established in December 2023, was set to facilitate a processing trial of up to 100,000 tonnes of Lancefield gold tailings through the Laverton processing facility and grant Mt Morgans access to 2.5GL of water per annum from the South Windarra open pit over a five-year period.
The termination comes as conditions precedent were not satisfied or waived by the involved parties within the required time frame.
Despite this setback, Poseidon reassured stakeholders that their agreement with Encore Minerals remains unaffected.
The agreement aims to develop the Windarra Gold and Nickel Tailings using Draslovka’s Glycine Leaching Technology.
Encore Minerals plans to utilise their proprietary Glycine Leaching Technology (GlyCatTM + GlyLeachTM) to process the Windarra gold and nickel tailings.
There is also potential to process Lancefield gold tailings under this technology.
Poseidon Nickel CEO Brendan Shalders commented on the development, stating, "The termination of the Mt Morgans agreement does not impact our ongoing partnership with Encore Minerals, which is key to the development of the Windarra Tailings Project."
The company remains committed to its strategy focused on expanding reserves and resources and aims for a profitable restart of its established processing operations in Western Australia.
Poseidon Nickel is a nickel sulfide exploration and development company. The company has three projects located within a radius of 300km from Kalgoorlie in the Goldfields region of Western Australia and a resource base of over 420,000 tons of nickel and 180,000 ounces of gold.