PERTH (miningweekly.com) – Junior diversified explorer NewPeak Metals has unveiled new lithium plans in South America.
The ASX-listed company on Thursday announced the proposed acquisition of a 25% to 30% interest in UK-based mineral explorer Southern Cross Britannia, which holds over 1 100 km2 of exploration tenure in the Salta province of Argentina, including the Hombre Muerto South lithium project.
Under the terms of the agreement, NewPeak will transfer its wholly-owned subsidiary Excarb SA and pay $1.5-million for its 25% interest. Excarb holds all NewPeak’s mineral interests in Argentina. The funds paid by NewPeak will be used to complete a drilling programme at Hombre Muerto South.
NewPeak could acquire a further 5% in Southern Cross at its own discretion for $1.5-million within three months after drilling is completed at the project area.
“This acquisition will provide the company with access to a compelling market opportunity in lithium. Southern Cross has a strong leadership and technical team, and we are excited about the potential of this new lithium exploration opportunity,” said NewPeak chairperson Brian Moller.
“The transaction is the first stage of the company’s rejuvenation plan in securing new mineral exploration opportunities and we look forward to working together to progress this opportunity in lithium exploration and create value for our collective shareholder base.”
The transaction is subject to a number of conditions, including Southern Cross completing a geophysics survey and confirming the prospectivity of the tenements for lithium.