PERTH (miningweekly.com) – Junior explorer Monax Mining has signed a binding term sheet to acquire a prospective lithium project in Queensland.
The company told shareholders on Tuesday that it would earn an 80% interest on an exploration permit by spending A$500 000 over an 18-month period.
At the completion of the farm-in, the vendor could elect to either sell its remaining 20% interest in the project area to Monax for an agreed amount, to sell its interest to a third party or to enter into a joint venture with Monax until a decision to mine.
Once a decision to mine was taken, the vendor had the option to co-fund expenditure based on its interest, or to convert its interest into a 1.5% net smelter royalty for all mineral sales derived from the tenement.
Monax meanwhile also applied for a tenement adjoining the farm-in area, on the basis that it could host lepidolite pegmatite.