Exploration and resource development company Morella (ASX:1MC) reports it has completed all earn-in requirements under the Sayona earn-in agreement for the acquisition of lithium assets located in Western Australia’s Pilbara region.
It is reported that Morella has satisfied both expenditure and activity requirements covering several lithium projects in Western Australia and has formally notified Sayona Mining of the milestone, with both parties now required to enter a formal joint venture (JV) agreement.
This JV agreement between Sayona and Morella will establish the latter as the 51% managing partner with Sayona retaining the remaining 49%.
Key terms of the earn-in agreement included Morella spending upwards of $1.5 million on exploration within 3 years to earn the 51% stake in the lithium interest and if it wished to withdraw, it had to spend a minimum of $500,000, including at least 1,500m of drilling on the Mallina Project.
Other terms included Sayona retaining the remaining 49% stake in the tenements, subject to possible future potential dilution in line with any increased spending by Morella, should Sayona decide not to participate. However, Sayona will retain 100% interest in the gold and non-lithium rights.
Addressing the completion of the earn-in requirements, Morella Managing Director, James Brown says: “The completion of the prerequisite expenditure and activities is a great result for both Morella and Sayona, a company we are closely aligned with.
“The completion of the prerequisite expenditure and activities is a great result for both Morella and Sayona…”
What is most pleasing is the focused evaluation programs at the 3 key projects in Mallina, Tabba Tabba and Mount Edon, that have identified highly prospective lithium targets in each project. We look forward to working with the Sayona team in formalising the joint venture and progressing the prospective areas as quickly as possible in 2023.”
The company also notes that the tenements are situated in 2 separate groups, named the Pilbara Tenements and the Mid-West Tenements.
In addition, work conducted to date on these lithium prospective assets has identified 3 highly-prospective targets at the Mallina, Tabba Tabba and Mount Edon projects.
Morella is an exploration and resource development company that is focused on lithium and battery minerals, and is currently engaged in exploration activities on 2 project opportunities that are strategically located in Tier 1 mining jurisdictions in both Australia and the US.
It is the company’s goal to secure and develop raw materials to support the surging demand for battery minerals, critical in enabling the global transition to green energy.
Images: Morella Corporation Ltd
