PERTH (miningweekly.com) – Junior explorer St George Mining has announced the acquisition of seven hard rock lithium projects in Western Australia.
The company on Wednesday announced a transaction with unlisted Chariot Corporation and Stallion Lithium to acquire the 14 exploration licences which cover a total 653 km2 of tenements.
Several of the projects are located along strike from high-grade lithium deposits and established spodumene-producing lithium mines, including the Split Rock project, which is 25 km from the Earl Grey lithium deposit owned by Covalent Lithium, the Buningonia and Buningonia North projects, which are in the same lithium province as Global Lithium’s Manna project and the Bald Hill mine, and the Myuna Rocks project, which is located near the operating Mt Cattlin mine.
“This is a strategic move by St George to deliver a step-change in exploration opportunities in the world’s premier hard-rock lithium address of Western Australia,” said executive chairperson John Prineas.
“Several of the projects being acquired are located in regions that have delivered very significant results for other explorers and led to the confirmation of high-grade deposits being developed or already underpinning mining operations. Exploration ground in these regions is highly sought after.
“The projects being acquired by St George are underexplored for lithium. Our focus will be on unlocking any resource potential through systematic exploration. The acquisitions are in line with our strategy to build and explore a high-quality portfolio of lithium assets in Tier 1 jurisdictions like Western Australia,” said Prineas.
Under the terms of the transaction, St George would pay an initial A$300 000 in cash on completion of the transaction, along with A$400 000 worth of shares in the company, amounting to some 6.06-million shares.
A resource milestone payment of 15-million fully paid ordinary shares in St George is also due on the announcement of a Joint Ore Reserves Committee-compliant inferred resource of no less than 10-million tonnes of lithium oxide, with a minimum grade of 1%. A 2% net smelter royalty would also be retained by Charot for any mineral product produced and sold from the lithium projects, with St George having the right to buy back half of the royalty by paying A$5-million in cash at any time prior to the start of commercial production.