PERTH (miningweekly.com) – Junior Pantoro and its Norseman gold project joint venture (JV) partner Tulla Resources have struck an agreement with ASX-listed Mineral Resources to hunt for lithium on the gold project tenements.
Mineral Resources would complete a minimum A$500 000 spend within the first six months of the lithium partnership, and would spend a further A$2.5-million within 18 months thereafter.
Mineral Resources would also be expected to complete a feasibility study, including the definition of a Joint Ore Reserves Committee compliant resource within a 24 month period, to earn a 25% interest in the lithium rights within the Norseman gold project.
Mineral Resources could earn a further 40% interest in the lithium rights by sole-finding the project until first production.
Pantoro and Tulla would maintain the right to buy back ownership in the JV to a combined 49.9%, while Mineral Resources would need to make a final investment decision on a lithium project within three months of meeting its initial farm-in interest.
“This new partnership is an outstanding outcome for Pantoro to maximise the value of a key mineral asset at Norseman. The agreement allows us to progress without any distraction from our core business of gold development and mining, while maximizing value for our shareholders,” said Pantoro MD Paul Cmrlec.
“Mineral Resources is a development and production focused company with an excellent track record and reputation. Pantoro has every confidence that Mineral Resources will ensure the successful development of the lithium assets.”
Tulla executive director Mark Maloney said that the new agreement would allow the gold JV to focus on the restart of gold production at Norseman, with production scheduled for August next year.