Australian mining company Liontown Resources has signed an agreement to divest its Bynoe lithium project tenure near Darwin in the Northern Territory to Core Exploration.
Under the agreement, Core will offer an initial payment of $3.5m followed by additional $1.5m, which is conditional on the achievement of project milestone of defining a 5Mt lithium resource on Liontown’s ground.
The acquisition is said to be adjacent to Core’s Finniss lithium project and is expected to enable the company to build an expanded project to meet the growing global lithium demand.
Together, the projects cover an area of more than 500km² of granted tenements near Darwin.
Core Exploration managing director Stephen Biggins said: “Core’s consolidation of the large number of lithium mineralised pegmatites in the Bynoe Pegmatite Field places Core in an ideal position to take full advantage of the excellent logistics close to Darwin, Australia’s nearest port to China.
"In light of reports this week that Chinese regulators are working on a timetable to set a deadline for automakers to end sales of fossil-fuel powered vehicles in China, similar to plans already in place in Europe, Core is making aggressive steps to build and develop the Northern Territory’s first lithium mine."
The deal comprises tenements EL 29699, EL 30015, EL 30012, ML 16 and EML 28651. Under the agreement, Core is also expected to offer 39,232,025 shares to Liontown.
Subject to certain ministerial approvals and consents, the transaction is set to add several lithium pegmatite targets and more than 50 pegmatite prospects to Core’s portfolio.
Exploration of Bynoe project is expected to begin immediately.