Exploration firm Golden Mile Resources has signed a binding agreement to buy rights to three exploration licences in Western Australia (WA), from Australian firm Calatos.

Located near Marble Bar, an emerging gold and lithium district in East Pilbara, the three tenements are E 45/6127, E 45/6129 and E45/6131, together called the Calatos Project.

The project is located within 100km distance of the major lithium mines, Wodgina and Pilgangoora.

According to the agreement, Golden Mile will acquire the rights to the Calatos Project by making a A$33,000 cash payment to Calatos.

Golden Mile will also issue three million of its ordinary shares to Calatos, each at a deemed issue price of A$0.05. This will be valued at A$150,000.

As deferred consideration, the exploration firm will issue its ordinary shares valued at A$150,000 to Calatos, upon declaration of an independent JORC Inferred Mineral Resource.

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By GlobalData

Golden Mile expects the acquisition to strategically expand its portfolio of exploration projects focused on critical green metals, including copper, nickel and lithium, to meet the anticipated growth in the electric vehicle (EV) sector.

In a press release, Golden Mile said: “The tenements are relatively unexplored with only four holes completed all within E 45/6127 and no drilling on the other two tenements. There appears to be no recorded exploration specifically targeting lithium or nickel on any of the tenements.”

Golden Mile also stated it agreed to accept A$1.6m in applications, before costs.

Around 28.5 million shares will be issued, with around 14.2 million free attaching listed options for every two shares allocated.

The options will carry an exercise price of ten cents each and an expiry date of 23 September 2023.

Golden Mile plans to take shareholder approval for the issuance of the options at an extraordinary general meeting to be convened in the months to come.

Following costs, the firm will get around A$1.5m in funds under the placement that will be used for funding acquisition cost and exploration at the Calatos Project, as well as further exploration at the Yarrambee, Yuinmery and Quicksilver projects, among others.