Zeus Resources (ASX:ZEU) has executed a binding asset sale agreement with Delta Lithium’s (ASX:DLI) privately held subsidiary Electrostate for the sale of the Mortimer Hills Project in Western Australia.
The Mortimer Hills Project is located 5km east-southeast along strike from Delta’s Malinda lithium prospect, part of the Yinnetharra Lithium and Tantalum Project.
Under the deal, Zeus will receive $150,000 cash, with future upside retained through a structured resource royalty linked to the delineation of a lithium resource at the project.
Delta Lithium, which has a market capitalisation of $121.8 million, will assume responsibility for all future exploration expenditure at Mortimer Hills.
Meanwhile, Zeus will retain exposure to any potential discovery and development success. The company says this arrangement allows it to preserve capital, strengthen its balance sheet, while also maintaining upside exposure.
Delta Managing Director James Croser says the extra tenure along strike from Malinda provides the company with a compelling opportunity to conduct further exploration and build upon its existing understanding of Yinnetharra.
“Delta’s dominant position surrounding the 33 supersuite granites, which are thought to contribute significantly to the Malinda and Jameson deposits, has been enhanced,” Croser says.
Zeus Chairman Alvin Tan says this transaction allows the company to realise upfront value and retain exposure to potential lithium upside.
“Its a win-win that enables us to focus on advancing our other projects while maintaining optionality should Delta be successful in defining a lithium resource,” Tan says.
Delta Lithium is a mineral explorer and developer focused on uncovering lithium-bearing pegmatite deposits in Western Australia.
Zeus Resources is a mineral explorer focused on lithium, potash, and other metal resources as well as assessing investment options in multi-commodity assets.
Write to Aaliyah Rogan at Mining.com.au
Images: Zeus Resources
