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Australian mining exploration company Alderan Resources has entered an agreement to purchase Parabolic Lithium, which holds the right to select a 100% stake in seven lithium exploration projects in Minas Gerais, Brazil.

The projects span 472km² and include 24 granted exploration licences across seven areas, namely Carai, Catuji, Curral de Dentro, Governador Valadares, Itaipe, Itambacuri and Minas Novas. All these projects are situated within and to the south of Lithium Valley.

Other discoveries at Lithium Valley include the Sigma Lithium-owned Grota do Cirilo project, which has measured and indicated resources of 77.034 million tonnes (mt) at 1.43% lithium oxide (Li₂O). It also includes the Salinas project, which is owned by Latin Resources and has measured and indicated resources of 45.2mt at 1.34% Li₂O.

As an initial deal consideration, Alderan agreed to pay A$110,000 ($70,513.30) in cash and issue 150 million of its shares, at A$0.006 apiece, upon shareholder clearance. The consideration also includes 100 million class AL8OA options, each exercisable at A$0.016, which will expire in September 2025.

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The company will also issue shares, subject to achieving certain milestones. If six rock chips with more than 1% Li₂O in separate spodumene-bearing pegmatites at the project are achieved, it will issue 50 million shares priced at A$0.006 each.

If drill intercepts of more than 10m are done with a minimum of 1% Li₂O at the project, the company will issue 75 million shares. It will be followed by the company reaching a mineral resource minimum at 1% Li₂O, when it will issue 150 million shares.

In addition, Alderan secured commitments from investors for a conditional share placement to raise nearly A$1.75m. Subject to shareholder approval, it will issue 291.66 million of its shares to raise the funding.

Alderan managing director Scott Caithness said: “The acquisition of Parabolic’s large and highly prospective granted tenement package in an established lithium district in Brazil is a very exciting development for Alderan and represents the successful culmination of project generation focused on securing high potential critical metals exploration opportunities.

“Parabolic has an established in-country team with significant experience in identifying lithium prospective areas and has offered to assist Alderan to fast-track its on-ground exploration activities, which are planned to commence in Q4 2023.”