Dalaroo Metals (ASX:DAL) has executed a $1 million binding agreement to offload the lithium, caesium, and tantulum mineral rights at the Lyons River Project to Delta Lithium (ASX:DLI).
Lyons River sits about 1,100km north of Perth and about 220km northeast of the coastal town of Carnarvon. The project covers a total landholding of 838km-square.
Dalroo will sell the rights to focuson the newly outlined Goodbody gold prospect, the Browns 3.5km by 2km lead-zinc-silver-copper prospect, and the View Hill rare earth element (REE) prospect at Lyons River.
The company says a deep diamond drilling program is scheduled for the Q1 2024 at Browns and is hoped to lead the company towards the discovery of a Broken Hill type (BHT) mineralised system.
Under the transaction, Delta Lithium must expend a minimum of 50% of the annual statutory expenditure requirements on the Lyons River tenements, a commitment of $280,000 per annum for a period of 3 years from completion.
Dalaroo is expected to retain ownership of the Lyons River tenure and hold rights to all other metals and minerals apart from the lithium minerals.
Delta Lithium MD James Croser says the transaction is expected to boost the company’s footprint in the Gascoyne region by 161% to 1,356km-square.
“We will use our existing base to concurrently explore a regional pipeline of promising prospects that could support a long-life lithium operation in the area, starting with Jamesons in 2024 and greenfields exploration on this newly acquired ground.”
Dalaroo Metals is a base metals explorer focused on making new nickel-copper-platinum group element and lead-zinc-copper discoveries in Western Australia.
Delta Lithium is an explorer and developer focused on bringing high-quality, lithium-bearing pegmatite deposits in Western Australia into production.
Write to Adam Drought at Mining.com.au
Images: Dalaroo Metals