PERTH (miningweekly.com) – ASX-listed Liontown Resources has struck a deal with fellow listed Core Exploration to divest of its Bynoe lithium project, in the Northern Territory.

Under the terms of the agreement, announced on Thursday, Core would acquire the Bynoe project for an up-front cash consideration of A$1.5-million, as well as the issue of 39.2-million shares in Core, valued at A$2-million.

In addition, Liontown would be issued a further A$1.5-million in either cash or Core shares on the definition of a Joint Ore Reserves Committee-compliant resource of five-million tonnes within the Bynoe tenure.

Following the transaction, Liontown would hold an 8.2% interest in Core.

The Bynoe lithium project is adjacent to Core’s Finniss lithium project, and the company told shareholders on Thursday that the consolidation of these two assets would mark a key commercial step to building an expanded project of global significance in an ideal location to service accelerating lithium demand.

The Bynoe tenements includes a granted mining lease, an extractive mining lease and three exploration licences, and combined with the Finniss project would cover a combined area of 500 km² of granted tenements near Darwin.

“Core’s consolidation of the large number of lithium mineralised pegmatites in the Bynoe pegmatite field places Core in an ideal position to take full advantage of the excellent logistics close to Darwin,” said Core MD Stephen Biggins.

Liontown, meanwhile, told shareholders that while widespread mineralisation had been intersected within the tenure, a commercial review had indicated that rationalisation of the tenements and resources in the area would significantly enhance the economics of future mining projects.

Proceeds from the sale of the Bynoe project would go towards advancing Liontown’s other Australian projects.