PERTH (miningweekly.com) – ASX-listed Cazaly resources and fellow-listed Lithium Australia have agreed to combine their Western Australian assets and jointly hunt for pegmatite minerals, including lithium.
The agreement would combine the two companies’ present and future lithium mineral interest within a 100-km radius of Kalgoorlie, for an initial period of five years.
Lithium Australia said on Monday that the Goldfields lithium alliance (GLiA) would significantly enhance the technical and land management resources available to advance lithium projects within the region.
Cazaly for its part told shareholders that the GLiA granted the company immediate access to 50% of Lithium Australia’s rights to the Coolgardie rare metals venture, which was contiguous with the company’s own Kangaroo Hills lithium project.
The Coolgardie project, which is joint venture with Focus Minerals, included historic lithium production mines. Under the agreement with Focus, Lithium Australia had the rights to all metals derived from pegmatites on the property and would free-carry Focus a 20% interest until a decision was made to commit to feasibility studies.
Under the GLiA, Cazaly would not be liable for any costs associated with metallurgical testwork or feasibility studies for the Coolgardie project, which instead would be borne by Lithium Australia.
“This alliance with the rapidly growing Lithium Australia gives Cazaly a massive leg-up into the expanding and exciting new lithium space,” said Cazaly MD Clive Jones.
“The alliance gives Cazaly immediate access to a greatly expanded holding in the Coolgardie region, including rights to historic lithium mines, and furthermore grants rights to the use of Lithium Australia’s exclusive lithium extraction technologies over our projects in the region.”