Explorer and developer Perpetual Resources (ASX:PEC) has signed an option agreement with RTB Geologia E Mineração to acquire 100% of a ‘highly prospective’ exploration tenement package in Brazil.
Perpetual, which has an $8.1 million market capitalisation, says through this agreement, it will gain access to 4 exploration permits in the mining-friendly state of Minas Gerais. A ‘key advantage’ of this deal comes from the tenements’ location within the renowned Eastern Brazilian Pegmatite District (EBPD).
This region represents a globally recognised hub for hard-rock lithium spodumene deposits and accounts for 100% of all officially recognised lithium reserves in Brazil. As a result, it is highly valued for its abundant spodumene pegmatites.
Perpetual reports these tenements are also situated only 20km from the tier-one Grota do Cirilo spodumene mine owned and operated by NASDAQ- and TSX-V-listed Sigma Lithium (NASDAQ: SGML) (TSXV: SGML), which currently boasts a C$5 billion market capitalisation and a ‘world-class’ lithium reserve.
The company notes this agreement represents the first step in its plan to broaden its project portfolio with a complementary asset, while its Beharra Project continues to move through the permitting and offtake phase of its development.
Perpetual’s share price has increased by 46.667% to $0.022 as of 3:30pm AEST.
The terms of the acquisition include Perpetual paying an initial $25,000 fee to complete all due diligence before electing to either exercise or terminate the option before 18 September 2023. Prior to the expiry of the due diligence period, the company may elect to continue with the transaction and conduct exploration activities by making payments and issues.
These include a cash payment of $50,000 within 5 days after the due diligence period; issuing 5 million shares to RTB within the same 5-day timeframe; issuing two 5 million unlisted options packages exercisable at $0.025 and $0.03, respectively, with a 2-year expiry date to RTB; and a cash contribution of $100,000 towards the work and development of the project within one year after the due diligence period expires.
With these goals in mind, Perpetual Resources announces it has moved forward with the 60-day due diligence period and intends to work collaboratively with RTB to undertake field investigations of the tenements.
Speaking on the acquisition, Perpetual Resources Managing Director Robert Benussi says: “The team are very excited to have secured such a highly prospective group of tenements within a mining-friendly jurisdiction at the doorstep of Sigma Lithium’s Grota do Cirilo spodumene project, one of the largest, highest-grade, and lowest-cost hard rock lithium deposits in the world.
“The team are very excited to have secured such a highly prospective group of tenements within a mining-friendly jurisdiction”
The tenements are located within Brazil’s tier-one mining region, and we are looking forward to getting underway with some initial fieldwork during the due diligence period.”
Perpetual Resources is an ASX-listed explorer and developer pursuing exploration and development opportunities within the critical mineral sector.
The company’s flagship Beharra Project is located about 300km north of Perth and 96km south of the port town of Geraldton in Western Australia.
Write to Adam Drought at Mining.com.au
Images: Perpetual Resources Ltd