Errawarra Resources has announced a JV with Alien Metals, focusing on the Pinderi Hills Project in the West Pilbara region of Western Australia (WA).
The collaboration aims to advance lithium exploration, with Errawarra committing up to A$4m ($2.6m) to secure a 50% interest in the project over a five-year period.
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Initially, Errawarra will invest A$500,000 in Alien Metals through a company placement based on the ten-day volume-weighted average price prior to the agreement’s execution.
To earn a 25% stake, Errawarra must spend A$1m within the first two years, followed by an additional A$2.5m within three years to acquire the remaining 25%.
Upon completion of the first two stages, Errawarra will hold a 50% interest in the Pinderi Hills Project.
Thereafter, both Errawarra and Alien Metals will contribute to the project’s development on a pro-rata basis.
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By GlobalDataErrawarra plans to build upon the preliminary work, which included satellite imagery assessment and ground reconnaissance aimed at confirming the presence of pegmatites in the area.
The company is preparing to deploy its lithium exploration team to Pinderi Hills for detailed mapping and sampling of the pegmatite swarm.
The Pinderi Hills Project area encompasses 175km² of prospective land consisting of both granted mining leases and exploration licences.
Errawarra also noted the project’s strategic location just 25km south-west of its Andover West exploration licence.
Errawarra Resources executive chairman Thomas Reddicliffe said: “We are very excited by this new joint venture, which makes Errawarra one of the largest exploration companies by area in the newly developing world-class lithium province.
“The Pinderi Hills Project was highly sort after and has potential to host lithium pegmatites, and is located to the south-west of Azure’s lithium project at Andover.
“Having identified and confirmed a large pegmatite swarm on the tenements we will be moving quickly to determine the lithium potential of these pegmatites by way of systematic mapping and sampling, and we would hope this will lead to drill testing of the pegmatites that prove to be fertile.”
