Metal Hawk (MHK) has signed an option agreement with Horizon Minerals subsidiary Black Mountain Gold to purchase the latter’s western Yarmany project in Western Australia.

Located 40km north-west of Coolgardie, the 282km² project is considered prospective for both nickel sulphide and lithium mineralisation. It comprises seven granted exploration licences.

As per the deal, Metal Hawk will have a two-year option to purchase the western Yarmany tenements for A$400,000 ($266,744) on signing as an option fee.

The option fee comprises A$200,000 cash and fully paid MHK shares worth A$200,000.

Furthermore, Metal Hawk will issue fully paid MHK shares to the value of A$1m or cash to exercise the option on or before 30 June 2025.

The company is also required to spend A$1m on the Yarmany project prior to exercising the option and a minimum of A$500,000 prior to withdrawing from the option.

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Horizon Minerals may also elect to waive the payment and retain a 20% free-carried interest in the Yarmany tenements.

Metal Hawk expects the Yarmany project to complement its existing Berehaven Nickel and Fraser South Nickel/REE projects in Eastern Goldfields.

Metal Hawk managing director Will Belbin said: “We are pleased to have secured this quality belt-scale nickel and lithium project, which complements our existing Goldfields portfolio.

“The Yarmany project has seen very little nickel sulphide exploration activities since the 1970s, and limited lithium exploration. With a favourable geological setting along the Ida Fault, this large and contiguous tenement package presents as a tremendous discovery opportunity for the company.

“Metal Hawk will be applying targeted exploration for nickel and lithium mineralisation and is aiming to fast-track plans for drilling in 2023.”

Metal Hawk said pegmatite mapping and geochemical sampling have commenced at the Yarmany project.