Accelerate Resources (ASX:AX8) has received a $300,000 cash injection from Fortescue Metals Group’s (ASX:FMG) wholly owned subsidiary FMG Resources.
Accelerate, which has a $16.46 million market capitalisation, says it has received the funds after offloading 2 of its exploration licences in the East Pilbara region.
Funds will be used to support near-term drilling and exploration at Accelerate’s Karratha Lithium Projects.
As part of the transaction, a milestone payment of $500,000 cash upon Fortescue starting mining within the licences has been established.
Accelerate also announces permitting and heritage survey activities in relation to a maiden drilling program at the Prinsep Lithium Project have been submitted.
The company reports a program of works has also been submitted to the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) for approval while consumables and infrastructure are sourced to ensure rapid drill rig deployment once all permits are complete.
Prinsep is an advanced drill-ready lithium pegmatite system within the rapidly developing Karratha-Roebourne hard-rock lithium belt about 35km west of Azure Minerals (ASX:AZS) Andover Lithium discovery.
Accelerate Resources is a Perth-based explorer focused on discovering and developing critical metals, including lithium and manganese, as well as gold assets in Western Australia.
The company’s Karratha Projects encompass about 90km-square of prospective tenure within the emerging Karratha-Roebourne hard-rock lithium belt.
Write to Adam Drought at Mining.com.au
Images: Accelerate Resources
