Pantoro Ltd has advised that, in conjunction with its 50% Norseman Gold Project joint venture (JV) partner, Tulla Resources Ltd, a binding term sheet has been agreed with Mineral Resources Ltd to explore for, and develop, lithium deposits in a JV across the Norseman Gold Project tenure.
- Mineral Resources to complete a minimum of $500 000 expenditure within six months.
- Mineral Resources to spend a further $2.5 million within 18 months.
- Mineral Resources to complete a feasibility study including definition of a JORC compliant resource within 24 months to earn 25% of the lithium rights within the Norseman Gold Project tenure (Initial Farm In interest).
- Mineral Resources to earn a further 40% of the lithium rights (for a total 65% ownership) by funding the project until first production.
- Pantoro and Tulla (jointly or independently) have the right to buy back in to increase their ownership in the joint venture to a combined 49.9%.
- Mineral Resources must make a final investment decision to proceed with construction within three months of earning its Initial Farm In Interest.
- Mineral Resources is a recognised leader in the construction and operation of hard rock lithium mines in Western Australia, and brings tremendous technical, operational, and financial capacity to the JV.
- Mineral Resources will be responsible for all expenditure until first production and be the manager of the JV.
- The Buldania project lies immediately along strike of the Liontown Resources Ltd owned Anna Lithium deposit project – 14.9 million t at 0.97 Li20, 44 ppm Ta2O5.
- Rock chip samples taken by Pantoro from outcropping spodumene bearing pegmatites immediately along strike of the Anna deposit include:
- 3.96% Li20, 12 ppm Ta2O5
- 2.52% Li20, 33 ppm Ta2O5
- 2.24% Li20, 240 ppm Ta2O5
- 0.96% Li20, 217 ppm Ta2O5
- Drilling will commence as soon as possible.
Commenting on the partnership with Mineral Resources, managing Director Paul Cmrlec said:
“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 maximising value for our shareholders.”
“Mineral Resources is a development and production focussed company with an excellent track record and reputation. Pantoro has every confidence that Mineral Resources will ensure the successful development of the lithium assets. We look forward to rapidly generating drilling results from the highly prospective Buldania tenements.”
Read the article online at: https://www.globalminingreview.com/mining/16122021/pantoro-agrees-lithium-development-partnership-with-mineral-resources/