Torque Metals (ASX:TOR) has signed two option agreements to acquire 250km2 of tenements with gold and lithium prospectivity in Western Australia.
The tenements lie within the Goldfields region near Lord Resources’ (ASX:LRD) Horse Rocks Project and Future Battery Minerals (ASX:FBM) Kangaroo Hills Project.
Torque, which has a market capitalisation of $31.14 million, says geological and geophysical desktop analysis suggests these tenements share similar characteristics and structural settings with other prominent projects, such as Mineral Resources (ASX:MIN) Mt Marion Project.
Under the first agreement with vendors Maxwell Strindberg and Abeh Pty Ltd, Torque will pay the $1 for an exclusive option to acquire the first tenement package.
The grant of the stage one option is subject to satisfying standard industry conditions, including completing due diligence activities on the tenements and obtaining shareholder approval.
Once stage one is satisfied, Torque will issue 5 million shares, 5 million unlisted performance shares based on drilling success, and a 2% net smelter return royalty on all minerals mined from the tenements.
No further consideration will be payable to the vendors under the second stage, although they will retain the right to certain minerals found on the tenement holding, with a mineral rights deed to be negotiated.
The second agreement with vendor Leslie McEvoy features similar terms, except Torque issues 200,000 shares and a 2% net smelter return royalty in exchange for 100% ownership.
Torque says the acquisitions have the potential to grow the company’s tenure to 1,200km2.
Managing Director Cristian Moreno says upon exercising the options, the company will secure ownership of gold and lithium prospects, bringing its portfolio to 13 mining, 4 prospect, and 38 exploration licences.
“Notably, among these tenements, E15/1706 and E15/1707 located west of Horse Rocks, where multiple stacked lithium-caesium-tantalum pegmatite swarms with extensive fractionation have been identified by neighbouring explorers,” he says.
“The tenements in the Spargoville region demonstrate strong potential for both gold and lithium mineralisation. These tenements share boundaries with Kali Metals (ASX:KM1) and Marquee Resources (ASX:MQR).”
The company has kicked off geological mapping and sampling at the newly identified target areas, as a precursor for an initial drilling campaign.
Separate to the option agreements, Torque has applied for four additional tenements, which will further expand its New Dawn Lithium Project area, towards Arcadium Lithium (ASX:LTM) and Mineral Resources.
The company says this strategic move will position the New Dawn Project in key lithium-rich territories.
Write to Aaliyah Rogan at Mining.com.au
Images: Torque Metals
