JOHANNESBURG (miningweekly.com) – ASX-listed Liontown Resources is acquiring 100% of the rare metal rights for Ramelius Resources’ Kathleen Valley project, in Western Australia.
Liontown’s initial focus will be on the project’s Mount Mann area, which has recorded multiple high-grade lithium and tantalum values.
The Kathleen Valley project comprises 15 granted mining leases in Ramelius’s name. Liontown also recently lodged an application for an exploration licence covering 75 km2.
The miner will issue 25-million fully paid shares to Ramelius, which will retain its gold rights and uninhibited access for ongoing gold mining-related activities.
Liontown will also pay Ramelius 1% of gross sales of concentrate produced from the processing of pegmatite-hosted ores.
Further, Liontown will pay Ramelius $0.50/t of rare metal pegmatite-hosted ore mined and milled.
The mining leases are also subject to a nickel offtake and clawback agreement with Xstrata Nickel, in the event a significant nickel discovery is made at the project.
Liontown will immediately start work at the project, including getting permission for drilling at Mount Mann, carrying out systematic rock chip sampling, ranking pegmatites according to size and grade potential and starting reverse circulation drilling.