Arrow Minerals Limited (ASX: AMD) has announced that it has inked an earn-in agreement with Electrostate Pty Ltd that will see the later earn up to 85% of the company’s Malinda lithium project in Western Australia’s Gascoyne region.
The binding term sheet will see Electrostate earn a 75% interest in the project by spending $1,000,000 over eighteen months for exploration activities through to a pre feasibiility study, with an option to purchase an additional 10% for $290,000.
In addition, Electrostate will be required to make an upfront $60,000 payment to Arrow, and issue 5% of fully paid shares upon listing.
Post PFS, the project will be operated by the new Arrow-Electrostate joint venture.
“The exposure to a successful outcome in the lithium space puts Arrow in a position to quickly benefit from the rapidly expanding energy minerals market”
Lithium exploration at Malinda
The 600km² Malinda project is located in Western Australia’s Gascoyne Province, in an area described by Arrow as being “well endowed” with pegmatite-associated minerals.
In June 2016, Arrow completed a maiden fieldwork program, which was followed by a maiden RC drilling program in August 2017. Key results included:
- 23m @ 0.98% Li2O
- 2m @ 1.71% Li2O
- 11m @ 323ppm Ta2O5
Management comments
Arrow Minerals Chief Executive Officer Howard Golden said: “This agreement has significant upside for Arrow as well as our earn-in partner Electrostate. This allows the highly prospective Malinda project to be rapidly advanced while allowing Arrow to focus on its high priority base and precious metals projects in Burkina Faso and Western Australia. The exposure to a successful outcome in the lithium space puts Arrow in a position to quickly benefit from the rapidly expanding energy minerals market.
We look forward to continuing our successful exploration efforts in Africa and Australia and anticipate that the Malinda project will move forward rapidly to a mutually beneficial result.”
Images: Arrow Minerals Limited
