ASX-listed Zenith Minerals has accepted a A$2.75-million offer from a private Australian company for its Mt Alexander magnetite iron project in Western Australia.
Zenith will receive an up-front cash payment of A$250 000 from Mt Alexander Iron Ore, as well as ten yearly payments of A$250 000 each once the project has reached commercial production.
Zenith said on Tuesday that it would use the funds received from the divestment of Mt Alexander for working capital and towards advancing its project portfolio. Zenith is focusing its exploration activities at its 100% owned Split Rocks lithium project, located in Western Australia.
The company has started systematic screening of its 500 km2 landholding at Split Rocks, which is located within the Forrestania greenstone belt, which already hosts SQM-Kidman’s Mt Holland/Earl Grey lithium deposit containing 189-million tonnes at 1.5% lithium oxide.
Zenith’s Dulcie lithium target is located in the northern portion of the Split Rocks project, where aircore and reconnaissance drilling has confirmed thick pegmatite bodies that contain broad anomalous levels of lithium throughout.