Perpetual Resources (ASX:PEC) has entered into a definitive option agreement to acquire up to 90% of three tenements in the Minas Gerais region of Brazil.
The licences, covering 2,559 hectares, is located 3km from the company’s existing Isabella Lithium Project.
The company has been provided a 30-month exclusivity period, prior to deciding whether to move to an up to 90% ownership in a special purpose vehicle.
Under the option agreement, Perpetual will pay US$1 million ($1.57 million) to K2 Mineraação & Exportação in staged payments to acquire the 90% interest.
Executive Chairman Julian Babarczy says this acquisition represents an opportunity for the company, achieving a critical mass for its exploration work within one of the most exciting exploration districts globally.
“This acquisition also exhibits several critical factors which rank it exceptionally high in terms of prospectivity, including unrivalled location and proximity to known spodumene projects, confirmed lithium mineralisation of over 7.5% lithium oxide outcropping spodumene occurrence, walk-up drill targets and operational support from the vendor group, K2, who has been active in the region for decades,” Babarczy says.
“Importantly, this acquisition will generate significant operational synergies with our existing Isabella Lithium Project and hosts near drill-ready targets, with drilling aiming to commence later in the current half.”
At the Igrejinha licence, the company says it hosts drill-ready spodumene targets and as such, plans to conduct a drilling program in the first half of this year.
At the Renaidinho licence, initial reconnaissance work identified substantial pegmatites and plans to conduct further exploration to assess and define the extent of the mineralised zones.
Meanwhile at the Matrix licence, no modern exploration has been undertaken and Perpetual considers this area highly prospective.
Perpetual intends to conduct several exploration activities across the licences, including soil and auger testing, geophysical and hyperspectral surveys, as well as field reconnaissance work. These activities will be carried out ahead of drilling.
Perpetual Resources is a critical minerals explorer and developer focused on discoveries in the Minas Gerais region of Brazil.
Write to Aaliyah Rogan at Mining.com.au
Images: Perpetual Resources
