ASX-listed mining company Perpetual Resources has signed a binding option agreement with RTB Geologia E Mineração (RTB) to acquire a 100% interest in three lithium exploration permits in Brazil.

The permits comprise an area, referred to as the Ponte Nova Prospects.

Located in Minas Gerais, the permits are embodied in the Mineral Processes of the Brazilian National Mining Agency (ANM) and cover a total area of 4,969.16ha.

Perpetual claims that the permits are situated in a modelled pegmatite corridor that runs from Latin Resources’ Salinas lithium project and through the Colina Lithium deposit and potentially further north-east.

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By GlobalData

Perpetual managing director Robert Benussi said: “We have moved quickly and decisively to build a commanding land position in what has become the premier spodumene area in Brazil, which boasts several tier one deposits either adjacent or on-trend from the tenements we have secured under option, and which have earned the region the label of the ‘Lithium Valley’ of Brazil.

“We also are forging a close working relationship with the permit vendor group and several other in-country specialists, which gives Perpetual significant capacity to quickly assess these compelling exploration ground positions and ultimately quickly add value through exploration activities.”

The company has until 29 September 2023 to complete due diligence and can opt to either continue with the deal or abandon it, without extra costs.

If Perpetual plans to continue with the transaction, it will have to make an initial cash payment of A$25,000 ($16,325). It will be followed by another cash payment of A$150,000 ($97,953) within five days after the due diligence period.

In addition, the company also needs to issue ten million shares and 12.5 million unlisted options at A$0.03 ($0.019) with a two-year expiry date, to RTB within five days after the due diligence period.

Only after the payments in cash and issues of shares and options, RTB will transfer the 100% interest in the permits to the company.

RTB is also entitled to receive a 2% net smelter return (NSR) royalty over the minerals produced at the permits. Perpetual must pay A$500,000 ($326,513) to buy back half of the royalty.