Calidus Resources Limited (ASX: CAI) has acquired a 50 per cent interest in new Pilbara lithium exploration company Lithium Pty Ltd through a new JV.
Pirra Lithium, which is owned equally by Calidus and Haoma Mining NL, will be assigned tenements and lithium rights across the most prospective lithium ground in the Calidus and Haoma portfolios.
These tenements and lithium rights cover 1,063 sq. km. Substantial pegmatites have already been mapped on the tenements, several of which are associated with known tin-tantalum fields.
Calidus Managing Director Dave Reeves said the formation of the joint venture with Haoma gives Calidus a low-cost opportunity to gain exposure to an increased area of ground that has been targeted for its lithium potential.
Pirra Lithium creates a highly-leveraged exploration opportunity for our shareholders,” Mr Reeves said.
“There is clearly potential to unlock substantial value by exploring what is highly prospective lithium ground in one of the world’s best lithium provinces.
“We can capitalise on this opportunity without it having any impact on our core asset at Warrawoona, where we are on track to pour first gold in the coming quarter.
“As part of this strategy to create additional value for our shareholders while maintaining our sharp focus on Warrawoona, we are establishing a separate dedicated team to pursue this lithium opportunity.”
Location
Pirra Lithium has access to tenements totalling 1,063 sq. km. The tenements were selected based on lithium prospectivity from Calidus’ and Haoma’s extensive landholdings in the East Pilbara.
Proposed Exploration Programme
The various tenements will be initially ranked for their lithium potential. For the highest priority target areas, field mapping will be carried out immediately to determine the distribution, size, orientation, and mineralogy of the pegmatites.
Particular attention will be paid to the nature of any lithium-bearing minerals (e.g., spodumene, lepidolite). A handheld laser-induced breakdown spectroscopy (LIBS) analyser will be used to confirm the presence and composition of lithium minerals during field mapping.
This will enable rapid identification of the highest priority areas for drilling, and for applications for Programs of Work (PoWs) to be submitted to DMIRS and requests for heritage surveys to be submitted without delay.
Representative samples will be sent to a laboratory in Perth to provide more precise and accurate determinations of lithium concentrations. In addition, studies will be carried out to determine the deportment of lithium in the samples.
Transaction Details
Pirra Lithium will be owned 50% by Calidus and 50% by Haoma. Calidus will contribute the first $1M of funding for exploration and manage the exploration using existing infrastructure in the area. At that point, both parties will contribute equally to the funding of the Company. Calidus will also issue $1M in scrip at an issue price equal to the 5- day VWAP to Haoma as compensation for previous exploration.
Completion of the transaction is conditional on the parties agreeing to a formal mineral rights sharing agreement to govern the grant of the lithium rights to Pirra Lithium.