Lithium major SQM has agreed to buy a 30% interest in Pirra Lithium, which holds extensive lithium exploration acreage in the Pilbara, and ultimately increasing its ownership to 40% by injecting A$3-million to fund further exploration.
SQM Australia will acquire the interest from Haoma Mining, Calidus Resources said on Monday.
“SQM’s acquisition of a large stake in Pirra is a big vote of confidence in the prospectivity of the company’s lithium exploration acreage in the Pilbara.
“With an increased landholding of over 1 411 km2 in the Pilbara, Pirra is now funded to rapidly progress exploration across these tenements,” said Calidus MD Dave Reeves.
The initial focus will be on the Tabba Tabba South tenements, which lie immediately along strike from known lithium occurrences and on a belt that hosts significant lithium resources.
Calidus would maintain its position in Pirra at 40%, owing to the significant potential of the land package, said Reeves.
“[The company] will reassess its options for this holding as exploration continues. In line with this approach, there is no plan to seek an initial public offering of Pirra in the immediate term,” said Reeves.