PERTH (miningweekly.com) – ASX-listed juniors Venus Metals and Lepidico have entered into an option agreement under which Lepidico will explore for lithium mineralisation in the Youanmi district in Western Australia.
On executing the agreement, Venus will receive A$50 000 in cash and A$120 000 worth of Lepidico shares, giving Lepidico a 12-month option to explore the tenements held by Venus.
During the option period, the parties will negotiate the terms of a farm-in and joint venture agreement, with the terms to include Venus receiving A$350 000 in cash and shares, while Lepidico will have a four-year period in which to complete a full feasibility study leading to a decision to mine, in order to earn an 80% interest in the lithium rights.
Venus’ 20% share will be free carried to a decision to mine, and Venus will be carried through project finance, with the cost of finance to be repaid from the company’s 100% share of production.
If at any point during the four-year period Lepidico spends A$2-million on project expenditure, the company will automatically earn a 51% share in the lithium rights.
Venus said on Thursday that the deal with Lepidico gave the company a guaranteed path to market for its share of any lithium concentrate produced, should exploration be successful.
Lepidico has said that it is geared up to immediately start ground exploration aimed at developing drill targets for testing, before the end of the current field season.
The Youanmi district is known for its gold, vanadium and base metal potential, with lepidolite mineralisation identified in the course of zinc exploration in the Manindi area.