Kali Metals has signed a binding agreement to acquire a 30% stake in both the DOM’s Hill and Pear Creek Projects in Western Australia’s (WA) Pilbara region from SQM Australia.
This acquisition will grant Kali full ownership of these projects, enhancing its precious and base metals exploration portfolio.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
DOM’s Hill covers roughly 125km², and is situated around 110km south-east of Port Hedland and approximately 52km north-west of Marble Bar.
Pear Creek spans around 108km² across three exploration licences and lies between DOM’s Hill and the Marble Bar Project, approximately 140km south-east of Port Hedland and around 60km north-west of Marble Bar.
The agreement specifies that Kali will pay A$60,000 in cash, sourced from existing reserves, upon settlement.
Additionally, A$140,000 will be paid in Kali shares at a ten-day volume-weighted average price (VWAP) prior to and including the deal’s execution date. These shares will be subject to a voluntary escrow period of 12 months from their issue date.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFurthermore, a 1.5% net smelter return (NSR) royalty on metals produced will apply.
This move consolidates Kali’s control over its Pilbara assets following the restructuring of the previous option and earn-in agreement with SQM.
The Marble Bar Gold Project, once partially owned by SQM, is now fully under Kali’s management as part of this consolidation.
Additionally, the acquisition marks the end of the lithium-focused agreement between the two companies, although SQM will now have a presence on Kali’s register.
The completion of this transaction awaits only the receipt of specific transfer forms related to the stake registered with Kalamazoo Resources, which is anticipated soon. Kalamazoo currently holds this interest in trust for SQM.
Kali Metals managing director Paul Adams said: “The DOM’s Hill and Pear Creek projects were originally prospective for gold and base metals before being included in the SQM option and earn in agreement. Now that this agreement has come to a close, we are ready to follow up on the gold and base metal opportunities previously identified, in a vastly improved metal price environment.
“Kali now has the ability to leverage the considerable technical knowledge gained over the last four years into exploration for gold and base metals, dovetailing into the gold exploration programme at our nearby Marble Bar Gold Project.”
