The share price of ASX-listed exploration junior Lord Resources skyrocketed on Wednesday, as the company announced a farm-in agreement on the Horse Rocks lithium project with Mineral Resources (MinRes).
Subject to certain conditions, MinRes, which is a globally significant producer, will spend A$1-million in exploration to earn 40% of the project, located 20 km south of Coolgardie, in Western Australia.
In further stages, MinRes has the option to increase its stake to an eventual 85%.
The partnership not only provides Lord with nondilutive funding, but also offers access to knowledge and expertise in lithium exploration and production.
“The agreement validates the strong work Lord has already completed at the Horse Rocks lithium project and provides the opportunity to collaborate with a world-class exploration team drawing on their knowledge and expertise of this highly prospective lithium region,” commented MD Barnaby Egerton-Warburton.
The project is located in the Coolgardie-Norseman lithium super province, which also hosts MinRes’ Mount Marion and Bald Hill assets, as well as Essential Metals’ Dome North and Liontown Resources’ Buldania projects.
Lord’s share price reached a high of A$0.12 on Wednesday.