Morella Corporation Limited (ASX: 1MC) has satisfied its requirements under an earn-in agreement Sayona Mining Limited over a range of Pilbara WA exploration tenements.
Both parties are now required to enter a formal joint venture agreement whereby Morella will become the 51% managing partner with Sayona retaining the remaining 49%. The tenements the subject of the earn-in agreement are in two separate groups the Pilbara Tenements.
The completion of the pre-requisite expenditure and activities is a great result for both Morella and Sayona, a company we are closely aligned with,” Managing Director, James Brown, said.
“What is most pleasing is the focussed evaluation programs at the three key projects in Mallina, Tabba Tabba and Mount Edon, that have identified highly prospective lithium targets in each project.
“We look forward to working with the Sayona team in formalising the joint venture and progressing the prospective areas as quickly as possible in 2023.”
Key Terms of Earn-in Agreement (satisfied)
- Morella was required to spend $1.5 million on exploration within three years to earn a 51% stake in the lithium interest of the Pilbara project tenements;
- Should it wish to withdraw, Morella must spend at least $500,000 on exploration expenditure, including at least 1,500 metres of drilling on the Mallina project; and
- Sayona to retain a 49% stake, subject to possible future potential dilution in line with any increased spending by Morella, should Sayona not wish to participate. Sayona retains 100% of the gold and the non-lithium rights within the tenement portfolio.
