THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has struck a strategic consolidation deal US Masters Holdings (ASX: USH) in regards to the Lake Johnston lithium pegmatite field in Western Australia.
Under the deal LIT gains a prime position in new pegmatite discoveries with the company to hold lithium rights over three licences that dominate coverage of the Lake Johnston lithium pegmatite field
US masters will retain the gold and nickel rights within the licence areas.
USH granted exploration licences E63/1722 and E63/1723 surround LIT’s exploration licence application E63/1777.
In May 2016, Poseidon Nickel (ASX: POS) announced that sampling of lithium pegmatites very close to the boundary of E63/1722 had returned very high lithium assay results.
The pegmatites sampled by POS have been interpreted to be extending to the northeast, into E63/1722.
“Lake Johnston is a significant addition to LIT’s Yilgarn asset base, and the deal with USH puts us in the box seat in that area,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“While previous exploration ignored the lithium potential of the pegmatites, recent exploration has demonstrated conclusively the prospectivity of the area.
“It’s a great deal for LIT and for USH!”