Mineral Resources (MinRes) is set to buy 30 per cent of Galileo Mining’s lithium rights in a new joint venture agreement.
The 30 per cent will be sold from Galileo’s Norseman lithium project in Western Australia for a price of $7.5 million. A total of $5 million is to be paid within five days of the execution of the venture.
The two parties are also set to form a 70 per cent Galileo/30 per cent MinRes joint venture to explore for lithium on the project tenements.
“We are excited to add a lithium exploration joint venture to our ongoing exploration programs for PGEs (platinum group elements) and nickel at our Norseman project,” Galileo managing director Brad Underwood said.
“The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium. The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.”
Underwood said Galileo would benefit from the lithium-focused program with MinRes.
“With $5 million of additional funding to be received within five days of execution of the agreement, a further $2.5 million to be received within 12 months, and $10 million in the bank, Galileo is fully funded to undertake all of its planned exploration programs,” he said.
Galileo will retain ownership of tenements at Norseman, as well as the rights to nickel, PGEs and all minerals other than those contained within the lithium pegmatites.
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