JOHANNESBURG (miningweekly.com) – Copper and iron-ore developer Avalon Minerals on Thursday announced that it would move into lithium as a complementary business to its flagship Viscaria copper project, in Sweden.
The Australian company has secured interests in two main areas of lithium occurrences in Finland, including the Somero and the Kaustinen districts.
In Somero, Avalon has lodged two exploration reservation applications and has entered into an earn-in joint venture (JV) with Canada’s Nortec Minerals over the Kietyönmäki lithium occurrence.
In terms of the JV, Avalon would fund exploration on Nortec’s approved claims and on an area of interest in two stages to earn an 80% interest. To earn a 51% interest, Avalon would fund €500 000 over a 24-month period, followed by a second-stage investment of €1-million over another two years to earn a further 29% interest.
Avalon would pay Nortec €20 000 and issue one-million Avalon shares upon signing the heads of agreement, and if Avalon elected to move to the second stage, then it would pay Nortec €200 000 in either cash or shares or a combination of both.
In the Kaustinen district, which Avalon said hosted some of Europe’s largest lithium deposits, the company had lodged an exploration reservation application over areas prospective for lithium-bearing pegmatites.
“Low sovereign risk in Finland and Avalon’s operating base from Kiruna in northern Sweden, together with partnerships in Finnish entities, make this a compelling opportunity,” Avalon said in a statement.
The developer would hold all its lithium assets in a newly established subsidiary, Scandian Metals, which would provide flexibility for future growth and funding of the lithium portfolio.
In the meantime, Avalon continued to advance its Viscaria copper project and was proceeding with permitting for a two-million- to three-million-ton-a-year operation, producing more than 20 000 t/y of copper concentrate.