PERTH (miningweekly.com) – ASX-listed copper explorer Kingston Resources has entered the lithium space, announcing on Friday that it would acquire a major portfolio of lithium-prospective tenements in Western Australia and the Northern Territory.
In exchange for A$500 000 in cash and the issue of 165-million shares, Kingston would acquire 20 lithium prospective tenement applications in Western Australia and the Northern Territory, covering four key project areas, namely Mt Cattlin, Greenbushes, Bynoe/Wingate and North Arunta.
The share placement would be subject to a number of milestones, with the first 90-million shares subject to the announcement of an inferred mineral resource on one or more of the tenements of a minimum of five-million tonnes a year, at no less than 1% lithium oxide.
The second 90-million shares would be issued upon the announcement of an inferred mineral resource of no less than 10-million tonnes, at one or more of the tenements.
Furthermore, Kingston would also undertake a A$6.85-million capital raising to fund an aggressive lithium exploration programme.
An initial 40-million shares would be paced, at 2.1c each to raise A$840 000 under the company’s existing placement capacity, while a further 286.1-million shares would be placed subject to shareholder approval.