Empire Metals Regulatory News (EEE)

Empire Metals Limited / LON: EEE / Sector: Natural Resources

26 April 2024

Empire Metals Limited

("Empire" or "the Company")

Stavely Project Update

Empire Metals Limited (LON: EEE), the AIM-quoted resource exploration and development company, announces that, in line with the Company's strategy to accelerate the development of the Pitfield Titanium Project ('Pitfield') in Western Australia, management has undertaken an assessment of the Company's non-core assets and as a consequence decided not to extend the completion date for the acquisition of the Stavely Project, located in Victoria, which expired on 6 April 2024, and as a consequence the acquisition has been terminated.

Shaun Bunn, Managing Director, said: "Given the focus on the rapid advancement of Pitfield, the Company considers it prudent to rationalise its exploration portfolio and has decided not to proceed with the acquisition of the Stavely Project. The Board no longer believes that this is a core project for Empire and by rationalising the Company's portfolio, the Board can apply all of the Company's energy and resources on Pitfield as it targets a maiden resource in 2024, and the construction of a demonstration plant in the following year.

"I look forward to providing an update on our Development Plan for Pitfield, particularly on the establishment of an Exploration Target over two key prospect areas, an important outcome from our recent drilling campaign. This, and the next phase of mineralogical and metallurgical studies, will provide a much clearer picture of the potential value of the giant, titanium rich mineralised system."

Background - the Stavely Project

On 6 April 2022, Empire acquired a 70% interest in three prospective Australian-based exploration projects (the 'Projects') from Century Minerals Pty Ltd ('Century') through a Sale and Purchase Agreement ('Agreement'), subject to certain conditions precedent being satisfied. Two of the Projects, Pitfield and the Walton Project ('Walton'), are located in Western Australia whilst the Stavely Project lies within the Stavely Arc region of Victoria.

At the time of the initial acquisition the consideration payable for the acquisition of Pitfield, Walton and the Stavely Project was agreed and announced on 6 April 2022. The consideration would be satisfied by the issue of 16,835,588 new ordinary shares in Empire to Century, apportioned equally between each Project and issued upon the grant of the relevant tenement for each of the Projects.

Under the Agreement, completion of the sale and purchase of each Project was independent of the others. The sale and purchase of Pitfield, having a granted tenement at the time, was completed on the 6 April 2022. The sale and purchase of Walton completed on 29 March 2023, the date the tenement was granted. Following the completion of Pitfield, and subsequently Walton, the Company had issued a total of 11,223,725 shares by way of consideration for these acquisitions. 

At the date of the Agreement, there were a number of conditions precedent to be satisfied before completion of the sale and purchase of the Stavely Project and these were to be satisfied no later than 6 April 2024. One of these conditions precedent was the grant of the tenement comprising the Stavely Project. The expiry date has now passed and the tenement has not yet been granted.

Consequently, the Company has decided not to proceed with the sale and purchase of the Stavely Project, preferring to concentrate the Company's resources on the rapidly developing titanium project at Pitfield. The remaining 5,611,862 shares will therefore not be issued, and the Stavely Project will revert to Century.

**ENDS**

For further information please visit www.empiremetals.co.uk or contact:

About Empire Metals Limited

Empire Metals is an AIM-listed (LON: EEE) exploration and resource development company with a project portfolio comprising copper, titanium and gold interests in Australia and Austria.

The Company's strategy is to develop a pipeline of projects at different stages in the development curve. Its current focus is on the Pitfield Project in Western Australia, which has demonstrated to contain a newly recognised giant titanium-rich mineral system that hosts a globally significant titanium discovery.

The Company also has two further exploration projects in Australia; the Eclipse Project and the Walton Project in Western Australia, in addition to three precious metals projects located in a historically high-grade gold producing region of Austria.