Poseidon Nickel has resumed exploration at its Lake Johnston project in the Goldfields following the termination of a deal with Mineral Resources.
The ASX-listed battery metals explorer announced it has recommenced greenfields exploration after a four-month pause due to a sale process with Mineral Resources. The Lake Johnston project will now remain a part of Poseidon's portfolio.
"The board believes it has significant potential and opportunities for future value accretion within the company's tenure and surrounding tenements," Poseidon stated.
In March, Poseidon entered a $15 million binding heads of agreement for Mineral Resources to acquire the project, which led to the deferral of exploration activities. Mineral Resources planned to convert the Lake Johnston nickel plant to process lithium from its nearby Bald Hill and Mt Marion mines.
However, in the following month, Poseidon disclosed that Mineral Resources sought to renegotiate the purchase terms, calling this move "disappointing." Subsequently, Mineral Resources terminated the agreement after a due diligence period.
This development occurred during a challenging period for Poseidon, as its chief executive stepped down and Brendan Shalders, managing director at FTI, was appointed to the top role. Following Mr. Shalders' appointment, Poseidon announced various cost-cutting measures, including scaling back exploration to preserve its cash position.
Poseidon's shares last traded at 0.6 cents per share, reflecting a 50% increase at 1:50 PM AWST.
