Pioneer Lithium (ASX:PLN) has executed an option agreement with Wayne Benham to acquire a 100% interest in the Benham Project in northwest Ontario, Canada.
Under the deal, which is worth up to C$1.1 million all-up, Pioneer must pay an option fee, deferred payments over 4 years, and two milestone payments in return for its full ownership of the project. Pioneer may exit the deal at any stage with no future liabilities.
Initially, the company will acquire the undivided 100% interest in the Brenham Project upon the exercise fee of C$50,000 to Wayne Brenham.
Following the exercise of the option, Pioneer will pay Brenham C$75,000 12 months from the exercise fee payment, two payments of C$100,000 each 24 months and 36 months from the exercise fee payment, and C$50,000 48 months from the exercise fee payment.
In addition to and separate from the deferred considered, Pioneer will pay C$250,000 upon the declaration of a Mineral Resource Estimate (MRE) of at least 5 million tonnes (Mt) @ 1% lithium oxide (Li2O) within 3 years from the exercise fee payment and C$500,000 upon the declaration of a MRE of at least 10 Mt @ 1% Li2O within 3 years from the exercise fee payment.
Pioneer may terminate the option agreement with written notice at any time. Upon termination, the optionor will re-acquire an undivided 100% interest in the project.
The company plans to focus on early exploration fieldwork activities including prospecting, mapping, and collecting rock chip samples in its new area.
Given the existing infrastructure and proximity to townships, the company expects to incur expenditure of around C$25,000 for this work.
Following the completion of fieldwork and analysis of the results, Pioneer will determine the extent of any future exploration activities.
Pioneer Lithium Managing Director Clinton Booth says: “We are very pleased to add this highly prospective property to our existing portfolio and to have been able to achieve this with an acquisition structure which allows Pioneer Lithium to cost-effectively grow our asset base in a tier-one jurisdiction.
“This acquisition positions Pioneer Lithium extremely well for future growth as we progress our development strategy”
This acquisition positions Pioneer Lithium extremely well for future growth as we progress our development strategy.”
The Benham Project covers 1,245 hectares and lies between Patriot Lithium’s (ASX:PAT) Dryden Project and Beyond Lithium’s (CSE:BY) Victory and Victory West projects.
Pioneer Lithium is an ASX-listed lithium explorer focused on developing and exploring within Canada.
As of 30 September 2023, the company had $4.369 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Pioneer Lithium