Kali Metals (ASX:KM1) has signed a binding memorandum of understanding (MoU) with JX Advanced Metals (TYO:5016) for exploration funding at its Southern Lachlan Fold Belt Project.
The Japanese metals and refining company will provide up to $700,000 in exploration funding during an initial phase running until 31 March 2027.
Kali will remain operator of the project, managing agreed exploration activities and charging JX Advanced Metals a management fee. The parties will also establish a joint exploration committee to oversee the program.
The project, located east of Albury-Wodonga in northern Victoria and southern New South Wales, covers approximately 1,413km² of Palaeozoic granitoid and sedimentary units.
According to Kali, the area is prospective for lithium-caesium-tantalum pegmatites, tin, and tungsten mineralisation. It includes the Tallangatta Project in Victoria and the Jingellic Project in New South Wales across six exploration licences.
Following completion of the initial exploration phase, JX Advanced Metals will have the option to negotiate terms for a formal farm-in or joint venture agreement by 30 June 2027.
Managing Director Paul Adams says the company is ‘pleased’ to execute the MoU with JX Advanced Metals.
“The JX Advanced Metals’ funding will allow Kali to advance exploration across our large and prospective project area, which hosts numerous opportunities for the discovery of non-ferrous metals used in high technology industries,” Adams says.
“The support from JX Advanced Metals as a potential long-term partner is an exciting opportunity for Kali and its shareholders.”
JX Advanced Metals is engaged across the global metals value chain, including supplying materials used in semiconductor manufacturing, and continuously evaluates opportunities relating to copper and minor metals.
Kali Metals holds a portfolio of assets covering 4,029km2 of exploration tenure for gold, lithium, and critical minerals in Western Australia.
Write to Paula Fabe at Mining.com.au
Main image: Kali Metals
