Perpetual Resources (ASX:PEC) has signed a binding option agreement to acquire a 100% interest in 3 lithium exploration permits held by RTB Geologia E Mineração LTDA in Brazil.
Perpetual, which has a market capitalisation of $12 million, says the exploration permits cover an area of about 5,000 hectares and are situated in Brazil’s ‘lithium valley’ region.
Commenting on the option agreement, Perpetual Resources Managing Director Robert Benussi says: “We have moved quickly and decisively to build a commanding land position in what has become the premier spodumene area in Brazil, which boasts several tier one deposits either adjacent or on trend from the tenements we have secured under option, and which have earned the region the label of the ‘lithium valley’ of Brazil.
The company closed trade yesterday (9 August 2023) some 45.45% higher on the back of the announcement.
“We have moved quickly and decisively to build a commanding land position in what has become the premier spodumene area in Brazil”
We also are forging a close working relationship with the permit vendor group and several other in-country specialists, which gives Perpetual significant capacity to quickly assess these compelling exploration ground positions and ultimately quickly add value through exploration activities.”
As part of the option agreement, Perpetual will be entitled to conduct due diligence investigations from the date of execution of the option agreement until 29 September by making an initial cash payment of $25,000, which has been paid by Perpetual.
Prior to the expiry of the due diligence period, the company may elect to continue with the transaction and conduct exploration activities by making a cash payment of $150,000, issuing 10 million shares to RTB, and issuing 12.5 million unlisted options exercisable at $0.03 with a 2-year expiry date to RTB within 5 days after the due diligence period.
Upon completing the payments and share/option issues, RTB will transfer its 100% interest in the permits to Perpetual.
Perpetual will grant the seller a 2% net smelter return royalty on any minerals produced on the lands, though it will retain the right to buy half of this royalty back for $500,000. Further, Perpetual will issue up to 20 million extra shares to RTB based on JORC-compliant resource milestones on the permits within 5 years.
The company has now begun the 60-day due diligence period while working collaboratively with RTB to conduct field investigations of the tenements, which will support the decision to exercise the option and progress to ownership of the exploration permits.
In addition, Perpetual has also received firm commitments from investors to raise $1.5 million through a placement of just over 68.181 million fully paid ordinary shares, at an issue price of $0.022 per share.
The placement provides Perpetual with a ‘good’ capital position to continue advancing its Beharra Project alongside initiating its due diligence activities and initial exploration activities in Brazil.
GBA Capital will act as the sole lead manager to the placement.
Perpetual Resources is an ASX-listed company, pursuing exploration and development opportunities within the critical mineral sector. The company’s flagship asset, the Beharra Project, lies about 300km north of Perth in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Perpetual Resources Ltd
