View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
October 30, 2018

Pilgangoora to earn interest in Venus’ lithium tenements

Pilgangoora Minerals has signed a farm‐in agreement to earn an interest in Venus Metals’ lithium tenements in Western Australia.

Pilgangoora Minerals has signed a farm‐in agreement to earn an interest in Venus Metals’ lithium tenements in Western Australia.

Under the terms of the agreement, Pilgangoora Minerals will explore for lithium-bearing pegmatites on exploration licences in return for an interest in these tenements and lithium and associated minerals.

The licences include E45/4630 and E45/4684, at the Pilgangoora East project; E45/4627 and P45/3004 at Wodgina South; and E20/885 and E20/896 in Poona.

Pilgangoora Minerals has paid $200,000 to Venus in cash to gain access to these tenements.

The earn-in programme is structured in three stages. The first stage requires an expenditure of $1m in the first year on exploration activities, followed by a further payment of $200,000 in exchange for a 25% interest in pegmatite minerals rights over the tenements.

During the second stage, Pilgangoora Minerals can increase its stake to 50% by spending another $1m towards exploration costs and paying $350,000.

At this stage, a joint venture (JV) will be formed between the companies, with each firm owning a 50% interest in the entity.

“Pilgangoora Minerals will explore for lithium-bearing pegmatites on exploration licences in return for an interest in these tenements.”

Thereafter, Pilgangoora Minerals can choose to exercise an option to earn a further 25% interest. To achieve this, the company is required to complete a bankable feasibility study within five years of the date of formation of the JV.

Venus’s JV interest will be free carried until a decision to mine. Pilgangoora Minerals is responsible for arranging project finance and will also fund Venus’ share of costs as a development loan.

Venus will repay the loan from the proceeds of sale of production. The company will retain all rights over minerals other than pegmatite minerals.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Mining Technology