LCL Signs A$10M Colombian Asset Sale; Dada Project Yields 25m at 0.34g/t Au and 0.27% Cu

Strategic Divestment of Colombian Assets

LCL Resources (ASX: LCL) has taken a decisive step to streamline its portfolio by executing a binding Share Purchase Option Agreement with Tiger Gold Corporation (TGC) for the sale of its Colombian projects, including the flagship Quinchia Gold Project. The transaction, contingent on shareholder approval at the upcoming general meeting on 17 February 2025, is structured to deliver A$10 million in combined cash and shares to LCL.

The agreement stipulates an upfront payment of A$1 million upon satisfaction of conditions precedent, with additional cash and equity consideration tied to TGC's planned public listing on a Canadian stock exchange by the end of 2025. Notably, TGC retains the option to acquire 100% of the projects for A$9 million cash, bypassing the listing requirement. Completion hinges on legal validation of mineral claims, audited financials, and regulatory consents, all expected by March 2025.

Exploration Success at Dada Project in Papua New Guinea

While the Colombian assets are poised for divestment, LCL's exploration momentum continues in Papua New Guinea. The December quarter trenching program at the Dada gold-copper porphyry prospect within the Liamu Project has yielded encouraging results. Six trenches over approximately 400 meters of strike length confirmed consistent gold mineralisation, highlighted by 25 meters grading 0.34 g/t gold and 0.27% copper.

This discovery builds on historical anomalies and extensive veining, suggesting a robust porphyry system with potential for expansion. Additional pit sampling extended mineralisation westward, with grab samples indicating possible higher-grade zones. These findings reinforce LCL's strategic focus on advancing its PNG portfolio.

Corporate Developments and Financial Position

In November 2024, LCL successfully raised A$1.99 million through a placement to sophisticated investors, bolstering its cash reserves to A$2.8 million by year-end. The quarter also saw significant board changes, with Executive Chair Ross Ashton stepping down and Non-Executive Director Christopher van Wijk assuming the executive chair role. Chris Knee was appointed as a Non-Executive Director and granted performance rights, underscoring a refreshed leadership team aligned with the company’s growth ambitions.

Operating expenditures during the quarter included A$278,000 on exploration activities primarily at the Dada project, alongside corporate and administrative costs. The company maintains a healthy cash runway, estimated to support operations for over six quarters at current expenditure levels.

Looking Ahead

LCL’s strategic divestment of its Colombian assets to Tiger Gold Corporation is a pivotal move that could unlock significant shareholder value while allowing the company to concentrate resources on promising exploration targets in Papua New Guinea. The upcoming shareholder vote and subsequent regulatory approvals will be critical milestones. Meanwhile, the Dada project’s copper-gold porphyry discovery positions LCL well to capitalize on PNG’s mineral potential.