Gold Mountain (ASX:GMN) reports it is seeking to acquire up to a 75% interest in 4 lithium projects in north-eastern Brazil, covering 285km-square from diversified energy metals exploration and mining company Mars Mines.
The proposed transaction is subject to shareholder approval, to be sought at the company’s upcoming Annual General Meeting (AGM).
Gold Mountain has executed a binding heads of agreement (HoA) with Mars Mines granting the company a 60-day exclusive option to acquire up to a 75% interest in a package of ‘highly prospective’ lithium licences in north-eastern Brazil.
Should shareholders approve the deal, Gold Mountain will acquire an initial 20% interest in the projects through the issue of shares and options to Mars, with the ability to acquire an additional 55% interest through incurring project expenditure of $2.75 million over a 2-year period.
The tenements lie within the eastern Brazilian lithium belt over parts of the Borborema Province and São Francisco craton. The eastern Brazilian lithium belt covers all know past and present lithium producing districts in Brazil.
Situated in the north-eastern states of Bahia, Pernanbuco, and Rio Grande do Norte, the Mars package comprises 4 separate project areas which all have the potential to host lithium bearing pegmatites.
Commenting on the proposed transaction, Gold Mountain CEO Tim Cameron said: “We are excited about the proposed acquisition of up to a 75% interest in these highly prospective lithium projects is north-eastern Brazil.
Over the last number of months, we have been reviewing a range of potential acquisition opportunities to diversify our project portfolio; we believe that, given the location and commodity, these projects offer the Company the best opportunity to increase shareholder value.
“Brazil has seen increased interest from junior explorers and major mining houses, with the region being home to a number of lithium projects”
Brazil has seen increased interest from junior explorers and major mining houses, with the region being home to a number of lithium projects.
Our team will continue diligence work with the aim of initiating a maiden exploration program in November. I am excited to be part of this new venture for Gold Mountain and look forward to updating stakeholders and shareholders in due course.”
Gold Mountain notes that Brazil has experienced increased investment activity for lithium exploration, with notable junior exploration companies being Latin Resources (ASX:LRS) and Oceana Lithium (ASX:OCN).
The licenses it is poised to acquire are situated in areas which are known to host lithium bearing pegmatites and the licences are situated along strike from and covering known pegmatite bodies.
An aggressive exploration program has been prepared to map and sample strike extensions to known pegmatites with the aim of identifying drill target.
Gold Mountain plans to aggressively advance the Mars lithium project portfolio, alongside its Wabag copper-gold project, in Papua New Guinea.
Write to Adam Orlando at Mining.com.au
Images: Gold Mountain Ltd & iStock
