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July 5, 2021

Majestic intends to acquire stake in Australia’s lithium tenements

Majestic will undertake technical review and preliminary exploration work at the four tenements.

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.

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