Pantoro Limited (ASX:PNR) and JV partner Tulla Resources (ASX:TUL) have announced the signing of a binding term sheet with Mineral Resources (ASX:MIN) to farm out lithium exploration at the Norseman Gold Project in Western Australia’s Eastern Goldfields.
The deal will see Mineral Resources complete a minimum of $500,000 in exploration expenditure within six months, with a further $2,500,000 over 18 months. Following this, a feasibility study inclusive of a JORC-compliant resource will be delivered within 24 months for Mineral Resources to earn 25% of lithium rights at the project.
This stake could increase by a further 40% (to 65%) via funding of the project through until first production.
“The agreement allow us to progress without any distraction from our core business of gold development and mining, while maximising value for our shareholders”
Addressing the news, Pantoro Managing Director Paul Cmrlec said “This new partnership is an outstanding outcome for Pantoro to maximise the value of a key mineral asset at Norseman. The agreement allow us to progress without any distraction from our core business of gold development and mining, while maximising value for our shareholders.
Mineral Resources is a development and production focussed company with an excellent track record and reputation. Pantoro has every confidence that Mineral Resources will ensure the successful development of the lithium assets. We look forward to rapidly generating drilling results from the highly prospective Buldania tenements.”
Tulla Resources Executive Director, Mark Maloney added “There was considerable interest in the Norseman Project lithium assets and MRL’s proposal was compelling to Tulla Resources and Pantoro. MRL’s expertise and reputation to deliver was a key factor in the decision to enter into the farm-in with them.
While MRL will now embark on developing the lithium assets through to production, the JV will continue to focus on the recommencement of gold production scheduled for August 2022.
This is a fantastic outcome for all our shareholders and highlights the potential for the development of other minerals on the Norseman Project.”
Mineral Resources will act as manager of the new JV, and will be responsible for all expenditure leading through until first production. The company is recognised as an industry-leader in hard-rock lithium mining in Western Australia, with significant operations at both Mt Marion and Wodgina.
Pantoro and Tulla will retain a right, either jointly or independently, to buy back up to a combined 49.9% ownership in the JV.
