Octava Minerals (ASX:OCT) has secured an agreement to take hold of 100% of the Talga Lithium Project in the Pilbara region of Western Australia.
Currently, Octava owns 100% of one tenement in the project area and is farming into up to 80% of 6 tenements held by First Au (ASX:FAU), with First Au retaining a 20% free carried interest to a decision to mine.
Under the terms of the new sales agreement, Octava, which has a $3.23 million market capitalisation, will purchase the remaining 30%, including the 20% free carried interest holding in the Talga joint venture (JV) from First Au (ASX:FAU).
Octava will pay First Au $200,000 in cash, issue 1.25 million shares to First Au, which will be escrowed for 6 months, and grant First Au a 0.75% net smelter royalty (NSR).
Shares in Octava Minerals were up 28.57% to $0.09 as of 11:40am AEST.
Commenting on the agreement, Octava Minerals Managing Director Bevan Wakelam says: “We are pleased to secure 100% of the Talga Project in a sought-after region for lithium exploration in the Pilbara.
“There is highly prospective geology at Talga that has already provided initial indications of the potential for discovery“
There is highly prospective geology at Talga that has already provided initial indications of the potential for discovery. We will continue to actively conduct detailed exploration programs over the project area.”
The Talga Project holds the potential for the discovery of lithium-caesium-tantalum (LCT) type pegmatites. The project covers 202km-square and is located 30km north of Marble Bar.
Octava Minerals is a Western Australia-based green energy metals exploration and development company. The company has 3 projects in geographically proven discovery areas, with the key project being the Talga Lithium Project.
As of 30 June 2023, the company had $3.361 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Octava Minerals
