Woomera Mining (ASX:WML) has struck a farm-in and joint venture (JV) agreement to earn a 70% interest in Anax Metals’ (ASX:ANX) Mt Short Project in Western Australia.
Under the agreement, Woomera, which has a $10.51 million market capitalisation, must spend a minimum of $150,000 on the new project within 9 months of signing the agreement, and if Woomera elects to continue with the project, the company will need to pay Anax $50,000 cash.
Woomera may then earn its 70% interest by spending another $1.5 million over 3 years, and Anax may then elect to contribute or reduce to a 20% interest free carried to a decision to mine.
If Woomera makes a decision to mine, Anax may contribute its 20% or reduce to a 1.5% royalty.
Commenting on this agreement, Woomera Mining Chairman Ian Gordon says: “This is an exciting opportunity for Woomera to increase its footprint in a proven lithium belt. Furthermore, there are walk-up drill targets which the company will pursue as soon as access is secured.”
“This is an exciting opportunity for Woomera to increase its footprint in a proven lithium belt”
The company notes the intended source of the funds for the expenditure under the agreement will initially come from its existing cash reserves.
Woomera plans to execute access agreements with the various landowners over the next 3 months, after which it will conduct soil sampling across the entire tenement, alongside a reverse circulation (RC) drill program in the area of historical drillholes that intersected ‘significant’ pegmatite.
The company says these exploration activities will begin towards the end of 2023, once crops have been harvested.
Woomera Mining is an ASX-listed exploration company. The company is focused on exploring for battery metals and gold in the Yilgarn and Pilbara Cratons of Western Australia, plus the Musgrave Province in South Australia.
Images: Woomera Mining
