Lodestar Minerals divests 20% interest in Kangaroo Hills Lithium Project to Future Battery Minerals

Lodestar Minerals (ASX:LSR) has divested its remaining 20% interest in the Kangaroo Hills Lithium Project (KHLP) to joint venture partner Future Battery Minerals (ASX:FBM).

Lodestar entered into an agreement with Future Battery Minerals for the sale of its 20% interest in Eastern Coolgardie Goldfields, which holds the recently discovered KHLP and recently disposed of its interest in the Nepean Nickel Project.

The completion date of the divestment is expected to occur on or around 11 August 2023.

Addressing the sale, Lodestar Managing Director Ed Turner says: “Lodestar is very pleased to complete this transaction. We strongly believe in the future of the Kangaroo Hills Lithium Project and FBM’s ability to continue to prove up an economic resource.

“We strongly believe in the future of the Kangaroo Hills lithium project and FBM’s ability to continue to prove up an economic resource”

With this deal Lodestar no longer has to expend funds on exploration and development but will retain exposure to the upside with the potential growth in FBM’s share price as this project, FBM’s Nevada Lithium Project and their Saints Nickel Project advance. In addition, we receive cash and shares we can utilise to fund our exploration programs at the Earaheedy Project which is our primary focus now.

The Earaheedy Project has tremendous potential for gold and base metal discoveries as evidenced by our maiden drilling program that recently intersected significant gold and copper results.”

Future Battery Minerals Executive Chairman Mike Edwards says the acquisition of Lodestar’s 20% JV interest is a significant step in the company becoming the next lithium producer in Western Australia.

He notes that the acquisition also confirms the belief and potential the company sees at Kangaroo Hills and allows Future Battery Minerals to confidently move forward with strategic plans for the project.

“Both diamond core and reverse circulation (RC) drilling is underway together with metallurgical test work on core samples taken at Kangaroo Hills. We look forward to updating the market further as we progress on these important activities”.

Following the discovery of spodumene-bearing pegmatites in March 2023, Future Battery Minerals is now actively drilling the Big Red Prospect (29m @ 1.36% Li2O from 38m KHRC011) and the regional prospects, Rocky (5m @ 1.12% Li2O from 104m KHRC037), Eastern Grey, Wallaroo and Pademelon.

The company is also undertaking further target generative geophysics and geochemistry and  has commenced early-stage metallurgical test work on what has become an exciting hard rock lithium discovery.

Write to Adam Orlando at Mining.com.au

Images: Future Battery Minerals Ltd
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Written By Adam Orlando
Mining.com.au Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.