Majestic Gold has signed a letter of intent (LoI) to acquire a 65% stake in four separate prospective lithium tenements in Western Australia from Western Explorers.
The agreement involves four tenements, namely E36/918, E37/1334, E63/2110 (Kumarl) Tenement and E77/2817 (Moorine) Tenement.
During a six-month period, Majestic has the right to undertake a technical review and preliminary exploration work on the tenements.
Through a $75,207 (A$100,000) investment during this period, the firm will have the right to purchase a 65% stake in the tenements by signing a joint venture deal with Western Explorers.
Moreover, Majestic is required to contribute $752,070 (A$1,000,000) to fund exploration and maintenance of the tenements over a two-year period to earn its stake.
In a press statement, Majestic said: “After Majestic has earned a 65% interest in the joint venture, both parties shall contribute in cash for further exploration and exploitation in proportion to its ownership interest.
“If a party does not contribute, then the other party may subscribe for and contribute, in which case the ownership interest of the non-contributing Party may be diluted.”
Comprising two blocks located 150km North of Leonora, the E36/918 tenement is prospective for both lithium and tantalum.
This granted tenement is underlain by the Norseman-Wiluna Greenstone Belt, within the Archaean Yilgarn Craton.
The E37/1334 tenement, which has been approved, comprises six blocks west of Leonora township, 700km north-east of Perth.
Involving ten blocks, the E63/2110 (Kumarl) Tenement is located 250km south of Kalgoorlie and 90km north of the port city of Esperance.
On this tenement, the main north-south fault zone which was previously mapped splays off is to be prospected for lithium-bearing pegmatites.
The E77/2817 (Moorine) Tenement, which holds eight blocks, is located within the Yilgarn craton granites.
Both the E63/2110 (Kumarl) and E77/2817 (Moorine) tenements are under application.
Majestic Gold currently operates the Songjiagou gold mine in the eastern Chinese province of Shandong.