Australian miner Zeus Resources has finalised a binding asset sale agreement with Electrostate, a subsidiary of Delta Lithium, to sell its 100% interest in the Mortimer Hills lithium project (Tenement E09/2147) located in the Gascoyne region of Western Australia.
Under the agreement, Zeus will receive an upfront cash payment of A$150,000 ($95,882) and a structured resource royalty, which is contingent on the delineation of a lithium mineral resource with a minimum grade of 0.8% lithium oxide within the next four years.
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These payments will vary depending on the size and grade of the resource, with specific rates applied to quantities less than five million tonnes, between five and ten million tonnes, and more than ten million tonnes.
Delta Lithium will take on all future exploration costs at Mortimer Hills while Zeus Resources will benefit from potential discovery and development through the royalty structure.
This strategic move allows Zeus to focus on capital preservation and balance sheet optimisation while maintaining an interest in the project’s success.
The settlement of this transaction is anticipated to be completed soon, pending the fulfilment of standard conditions.
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By GlobalDataZeus chair Alvin Tan said: “The Mortimer Hills transaction allows Zeus to realise upfront value and retain exposure to potential lithium upside through a well-structured royalty.
“It’s a win-win that enables us to focus on advancing our other projects while maintaining optionality should Delta be successful in defining a lithium resource.”
Last year in March, Delta Lithium signed binding farm-in joint venture agreements with Voltaic Strategic Resources and Reach Resources, expanding its footprint in the Gascoyne region.
