Rapid Critical Metals Ltd (ASX:RCM) has reached an agreement to sell its Tin Mountain property, located in South Dakota, United States, to a subsidiary of IRIS Metals Ltd (ASX:IR1).
The transaction includes the sale of 93 federal mining claims covering a total of 752 hectares, held by Rapid Critical Metals subsidiary South Dakota Operations LLC, and marks a strategic move for both companies in the exploration sector.
Transaction details
Under the terms of the agreement, Iris Metals will pay consideration in both cash and shares for the Tin Mountain property.
The deal includes a share issuance of US$550,000, payable in Iris Metals shares, based on the 30-day Volume-Weighted Average Price (VWAP) up to June 29, 2025. At an estimated VWAP of A$0.113 per share, this equates to 7,455,912 shares, subject to approval at Iris Metals’ annual general meeting (AGM), scheduled for August 29.
In addition to the share issuance, Iris Metals has agreed to a cash payment of US$300,000 to the original claim vendor, F3 Gold LLC, which was completed on June 30. This arrangement provides Rapid Critical Metals with liquidity while advancing its strategic portfolio.
The agreement also includes a royalty provision, where F3 Gold LLC will retain a 2% gross revenue royalty on future production from the Tin Mountain project. This ensures a low-cost structure for Iris Metals as it proceeds with its exploration efforts at the site.
Strategic implications
The divestment allows Rapid Critical Metals to streamline its portfolio and focus on advancing its other exploration initiatives. The transaction provides liquidity through the cash payment and share issuance, while the royalty arrangement offers potential future revenue streams.
For Iris Metals, the acquisition of the Tin Mountain property aligns with its strategy to expand its footprint in the Black Hills region. In January 2024, the company secured the Tin Mountain patents, with a three-year initial access period and the right to purchase.
The project is situated approximately 12 kilometres from Iris's Beecher Project, enhancing the potential for a centralised processing facility. The proximity to existing infrastructure and the presence of lithium spodumene mineralization in the area support the company's objective of advancing near-term lithium production.