JOHANNESBURG (miningweekly.com) – ASX-listed junior Pioneer Resources has signed a second option agreement with TSX-listed International Lithium Corp (ILC), enabling Pioneer to earn an initial 51% interest in the Ontario-based Raleigh lithium project, which is 100%-owned by ILC.

Subject to ILC’s participation, Pioneer could ultimately earn an 80% stake in Raleigh, the company noted on Wednesday.

Raleigh is located 60 km south-east of the Mavis lithium project, which was acquired by Pioneer in March, subject to an option agreement and strategic alliance with ILC.

“Establishing advanced lithium projects in close proximity increases the likelihood of a future single infrastructure lithium production hub,” said Pioneer in a statement.

The company added that acquiring the Raleigh project was consistent with its strategy of acquiring and advancing key demand-driven commodities in Canada and Western Australia.

“The benefits of our strategic alliance with ILC are becoming evident, with Pioneer securing an option to acquire a majority interest in the Raleigh lithium project,” said Pioneer MD David Crook.

He noted that the objective of Pioneer’s alliance with ILC was to develop an operational hub for spodumene concentrate at a location with advanced infrastructure.

“Adding the nearby Mavis Lake lithium prospect greatly enhances the Dryden district as a preferred location. Fieldwork has commenced at the Mavis project, and drilling is expected to commence in September, with programmes planned for both projects,” added Crook.

Historically, the Raleigh project, which spans 440 ha, had been targeted for its tantalum potential. However, 2010 drilling demonstrated its prospectivity for lithium.

In addition to drilling expected in the third and fourth quarters of 2016, Pioneer planned to commit to additional exploration programmes this year – at both Raleigh and Mavis Lake – to complete exploration currently under way by ILC’s Canada-based technical team.