Lightning Minerals (ASX:L1M) has completed due diligence activities for its proposed acquisition of privately held Bengal Mining, and will now seek shareholder approval at a meeting on 13 June 2024.
Bengal holds two lithium projects — Caraíbas and Sidrônio — in Minas Gerais, Brazil, covering 3,372 hectares in a region that has emerged as one of the world’s premier lithium districts.
Lightning Minerals says work programs will begin this week at the projects, focusing on ground reconnaissance, geophysical drone survey works, drill targeting, and drilling. This work is expected to occur over the next six months, but is subject to change as the company gains further knowledge on the projects.
A geological team has begun on-ground reconnaissance work at the projects, in preparation for a site visit in June by Managing Director Alex Biggs and Exploration Manager Jarrad Woodland.
Biggs says Brazil is an “excellent jurisdiction in which to do business”, with other operators in the region demonstrating how quickly projects can be defined and developed.
“Gaining access to these projects and this region of Brazil is a significant achievement for the company and provides us with highly prospective lithium ground in the most prospective lithium regions globally,” he says.
“We are believers of the lithium and green energy thematic and have used the downturn in lithium prices as an opportunity to acquire projects that we see as cornerstones to our growth.”
Under the binding agreement to acquire Bengal, Lightning is expected to issue $1.55 million worth of shares, 6 million options, and 39.99 million performance rights to Bengal.
The Caraíbas Project covers 1,733 hectares and contains a series of albite and muscovite rich pegmatites, which were identified by Bengal’s initial reconnaissance work.
Meanwhile, the Sidrônio Project covers 1,638 hectares and is strategically located adjacent and along strike to the south from Caraíbas.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock
