PERTH (miningweekly.com) – ASX-listed Jadar Resources has entered into a collaboration agreement with fellow listed European Lithium to progress its Austrian lithium projects.
Jadar holds an 80% interest in subsidiary Jadar Lithium, which holds the Weinebene and Eastern Alps lithium projects.
The company has waived its right of refusal over the remaining 20% interest in the subsidiary, allowing European Lithium to purchase this interest from Exchange Minerals for A$125 000 in cash and more than 6.66-million fully paid ordinary shares.
European Lithium said on Tuesday that the proximity of the Jadar Lithium assets to its own Wolfsberg project, which has a Joint Ore Reserves Committee- (Jorc-) compliant resource of 11-million tonnes at 1% lithium oxide, created optionality and potential synergistic development and production scenarios for both companies.
The collaboration agreement between Jadar and European Lithium would include the establishment of a technical advisory committee to collaborate on the Weinebene and Eastern Alps projects and to share information on the best options to advance the assets, including recommendations on exploration programmes, budgets and development scenarios.
“This partnership and collaboration agreement formed with European Lithium will allow Jadar to progress our Austrian lithium assets with the assistance of a key strategic partner with significant Jorc-compliant resources neighbouring our exploration assets,” said Jadar executive director Adrian Paul.
“We are thrilled to have the opportunity to work with European Lithium and develop detailed exploration programmes which will see these projects progress further.”
European Lithium chairperson Tony Sage said the collaboration agreement gave the company a greater portfolio of highly prospective Austrian lithium projects which had the potential to increase the useful life of the proposed infrastructure for the production-ready Wolfsberg lithium project.
“The proximity of Jadar’s lithium projects to Wolfsberg presents a number of potential synergistic benefits for both companies and we look forward to beginning work to further the exploration activities at the project.”