Proceeds from the sale will be used for the exploration and drilling campaign. Credit: Andriy Solovyov via Shutterstock.com.

AX8 has finalised the sale of two non-core ELs in East Pilbara, Western Australia, to FMG Resources, a fully owned unit of Fortescue Metals Group.

Under the agreed terms, AX8 received $300,000 in cash upon closing.

Additionally, a milestone payment of $500,000 in cash will be made to AX8 once Fortescue starts mining within the ELs.

This infusion will be channelled towards the budget for the upcoming exploration and drilling campaign at the Prinsep Lithium Project and within the greater Karratha Lithium Projects portfolio.

Located 15km south of Karratha and 35km west of the Andover lithium discovery, the Prinsep Lithium Project is an advanced drill-ready exploration project.

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To date, mineralisation has been identified across two subparallel pegmatite zones, each extending more than 1,800m in length and up to 60m in width.

Accelerate Resources also highlighted its ongoing engagement with traditional owners to finalise the native title agreement and set a date for a heritage and ethnographic survey.

In October last year, AX8 signed binding agreements to acquire the Karratha Lithium Projects, which include the Prinsep Lithium Project, Mt Sholl Project, Mt Sholl East Project and Roebourne South Project.

The deal bolstered AX8’s battery metal strategy, and positions AX8 within the emerging Roebourne-Karratha lithium belt, which includes Azure Minerals’ Andover lithium discovery.

Additionally, the company announced an oversubscribed A$3.6m ($2.34m) capital raising from existing and new shareholders.