Lithium, News, Nickel

Poseidon resurfaces at Lake Johnston


After a four-month hiatus, Poseidon Nickel has recommenced exploration at its Lake Johnston project in Western Australia.

The company has identified numerous pegmatites nearby a 100 parts per million lithium oxide anomaly announced in January. Soil sampling planning to extend and infill the anomaly is underway.

“We are very excited on the suite of quality lithium and nickel greenfields targets generated from recently completed low cost exploration programs at both the Lake Johnston and Windarra projects,” Poseidon chief executive officer Brendan Shalders said.

“Based on the success of these programs, progressing our Greenfields exploration portfolio will continue as one of the key strategic pillars for the company moving forward.

“At Lake Johnston specifically, the company has recently defined multiple broad anomalous lithium values (>100ppm) over a strike length of 3km.”

Poseidon has made its return to Lake Johnston after a planned sale of the project to Mineral Resources (MinRes) fell through.

In March, the company announced a binding agreement to divest the asset to MinRes in a deal worth roughly $15 million.

Prior to withdrawing from the agreement, MinRes had proposed an alternative deal structure. However, Poseidon deemed it unsuitable.

“The alternative deal structure presented by Mineral Resources did not represent a compelling value proposition for Poseidon’s shareholders at this time,” Poseidon chief executive officer Brendan Shalders said last week.

“Poseidon is remaining hopeful that MRL will either complete the original deal as documented in the binding heads of agreement or that Poseidon and MRL negotiate a new deal structure which reflects the value we see in the Lake Johnston project.”

Poseidon has reserved its rights against MinRes, with the company receiving a $1 million non-refundable signage consideration.

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