Green metals explorer Lord Resources and Mineral Resources (MinRes) have entered into a binding farm-in agreement that focuses on the Horse Rocks lithium project.
The partnership will provide Lord Resources with non-dilutive funding and access to MinRes’ knowledge and expertise in lithium exploration and production, all while ramping up exploration at its Jingjing lithium project.
The agreement follows Lord Resources identifying multiple stacked lithium-cesium-tantalum (LCT) pegmatites at the project in January, which displayed extensive fractionation.
“We are extremely excited to secure a strategic partnership with MinRes,” Lord Resources managing director Barnaby Egerton-Warburton said.
“The agreement validates the strong work Lord has already completed at the Horse Rocks lithium project and provides the opportunity to collaborate with a world-class exploration team drawing on their knowledge and expertise of this highly prospective lithium region.
We also look forward to ramping up exploration at our Jingjing lithium project, which will provide a two-headed lithium exploration strategy.”
Under the agreement, MinRes has the right to acquire an initial 40 per cent interest in Horse Rocks by funding $1 million of expenditure within 18 months.
Lord Resources and MinRes have agreed to create a joint venture (JV) in Stage 2, where MinRes will have the option to earn a further 30 per cent interest by funding an additional $5 million in expenditure within 36 months of Stage 2 commencing.
MinRes can then earn a further 15 per cent interest in Stage 3 by funding expenditure through to a decision to mine, bringing its total potential interest in the project to 85 per cent.
Throughout the initial farm-in period, Lord Resources will manage the implementation of exploration and development activities on the Horse Rocks tenement.
The company will also have access to MinRes’ geological expertise so it can identify prospective mineral targets.
Once Stage 3 has been completed, Lord Resources has the option to stay in the JV and contribute to all future costs. Alternatively, it can convert its JV interest to a 1.5 per cent royalty.
This week also saw MinRes take over Poseidon Nickel’s Lake Johnston nickel concentrator and tenures so it can convert it into a lithium hub and begin piloting new lithium extraction technology in partnership with Lithium Australia.
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