PERTH (miningweekly.com) – ASX-listed junior Liontown Resources has acquired the Buldania and Norcott lithium projects, in Western Australia.
The company on Monday announced that it had entered into an agreement with a subsidiary of fellow-listed Westgold Resources, Avoca Resources, to acquire the lithium rights over the Buldania project, with Avoca to retain all other metal rights.
Under the terms of the agreement, Liontown would pay all ongoing statutory rents and rates for the tenement area, while also spending a minimum of A$100 000 on exploration within 12 months.
Furthermore, the company would pay Avoca A$2/t for ore mined, and 1.5% of gross sales revenue on any lithium or related metals extracted from the project site.
In a separate agreement, Liontown reached an agreement with privately held Galahad Resources over the Norcott project, 4 km south of Buldania.
Under that agreement, Liontown would acquire the exploration licence by paying Galahad an initial signing fee of A$10 000, and reimbursing the company’s previous costs of up to A$20 000.
A further A$50 000 will be paid to Galahad in cash, and Liontown would issue a further A$50 000 worth of shares to the unlisted company, while also paying a 1.25% royalty on the gross revenue of any product extracted from the Norcott project.
Liontown said that the company’s initial focus would be on the Buldania project, where it would immediately undertake geochemical sampling and geological mapping to define drilling targets.