Australian early-stage miner Osmond Resources has reached a deed of assignment and assumption with 5E Advanced Materials to assume its rights to earn-in and acquire the Salt Wells lithium-borate project in Nevada, US.
Located in Churchill County, Nevada, the Salt Wells project is situated 25km from the town of Fallon.
This project has 276 mineral claims, covering an area of 36km².
The surface salt samples in the northern area are claimed to contain up to 810ppm lithium and 1% boron with 5.2% boric acid equivalent.
The location is believed to be an internally-drained, fault-bounded basin covering 110km² of area.
Other than the recent surface salt sampling from the northern area and the reconnaissance magnetotellurics (MT) surveys, few modern explorations have been conducted.
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The counterparty to the agreement is Great Basin Resources (GBR). 5E has a right to earn a total of $3m and acquire 100% of the project by expanding as an agent for GBR.
5E has partially satisfied the expenditure requirement by spending $543,931. The remaining expenditure of $2.4m will be assumed by Osmond.
Osmond will be entitled to 80% of the stake in the project while 5E will retain the remaining 20% interest.
Osmond will subsequently have the option to acquire the 20% interest from 5E.
Osmond Resources executive director Andrew Shearer stated: “In the context of the opportunity to be a part of the transition to new clean energy economies, the acquisition of the Salt Wells lithium-borate project offers a tremendous prospect for all Osmond shareholders.
“Not only is the project located in Nevada, which is considered one of the most attractive mining jurisdictions in the world, but the deal’s terms allow us to direct all our expenditure into exploration.
“We now plan to move quickly into assessing existing exploration results, which will shape an exploration plan, with the target to commence on-ground activities and a maiden drilling programme in the second half of 2023.”