Archer Exploration Ltd. opted to terminate the farm-in and joint venture agreement with Cobalt Bull Pty. Ltd. that allowed the latter to earn a 75% interest in certain tenements of the company in South Australia, including the Ketchowla cobalt-manganese project.

The decision follows a favorable review on the cobalt potential of the project area and Cobalt Bull failing to meet the final conditions precedent under the deal, according to a Feb. 1 release.

The agreement allowed Archer to terminate if Cobalt Bull was unable to complete a capital raising or ASX listing by Jan. 31.

"In light of the strong interest shown in cobalt and the recent significant increase in the manganese ore price, Archer has decided to terminate the agreement," Executive Chairman Greg English said in the statement.

With the agreement's termination, Archer will now accelerate exploration at Ketchowla, the company said.