Perpetual Resources (ASX:PEC) has completed the exercise of both recently announced options to acquire multiple tenement packages in the ‘lithium valley’ region of Minas Gerais, Brazil.
The $12.27 million market capitalisation company completed the recent due diligence, including technical and legal enquiries, which were ‘highly supportive’ of Perpetual taking ownership of the tenement packages.
A recent reconnaissance site visit was also undertaken, which Perpetual says was ‘highly’ confirmatory and demonstrated ‘strong’ prospectivity across all permits.
Terms of the sale and purchase agreement of the Itinga and Paraiso prospects, Perpetual has elected to exercise its options and will make a cash payment of $50,000 within 5 days and issue 5 million shares to RTB within 5 days after the due diligence period.
Perpetual will also make a cash payment of $50,000 within 6 months after the expiry date of the due diligence period and contribute $100,000 towards the work and development of the project, within 1 year after the expiry of the due diligence period.
The company will also issue 5 million shares, 5 million unlisted options exercisable at $0.025 and 5 million unlisted options exercisable at $0.030 with a 2-year expiry date to RTB within 5 days after the due diligence period.
For the Ponte Nova prospect, Perpetual will pay $75,000 cash and a further $75,000 upon the purchaser receiving evidence that the permits have been lawfully granted.
The company will also issue 10 million shares and 12.5 million unlisted options exercisable at $0.030 with a 2-year expiry date to RTB, within 5 days after the due diligence period.
Now that the company has formally committed to the region, Perpetual is working to augment its footprint in the lithium region.
Commenting on the acquisition, Perpetual Resources Executive Chairman Julian Babarczy says: “We are thrilled to have now officially confirmed our entry into the exciting Lithium Valley region of Brazil, having exercised our options to proceed with the acquisition of almost 9,000 hectares of highly prospective lithium exploration permits located proximal several tier-one spodumene resources.
“Our due diligence enquiries have confirmed the strong prospectivity of these permits and we have immediately commenced a more comprehensive exploration phase on all prospects“
Our due diligence enquiries have confirmed the strong prospectivity of these permits and we have immediately commenced a more comprehensive exploration phase on all prospects.”
Perpetual has also progressed the establishment of a wholly owned Brazilian entity, which will facilitate a more comprehensive in-country presence. Relevant documents have been presented to Brazilian authorities, with official entity formation to occur in the coming weeks.
The company is interested in the diverse land package for several compelling factors, including the strategic positioning within the burgeoning spodumene-rich area now renowned as the ‘lithium valley’ of Brazil.
Perpetual Resources is an ASX-listed explorer and developer, focused on the critical mineral sector. The company’s flagship Beharra Silica Sand Project is located 300km north of Perth and 96km south of Geraldton in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Perpetual Resources
