THE BOURSE WHISPERER: Marindi Metals (ASX: MZN) has exercised an option to earn up to 70 per cent in the Gem pegmatite lease at the Forrestania lithium project in Western Australia.
Marindi Metals has paid the vendors $50,000 in cash and a further $100,000 in shares.
The option allows Marindi to earn a 51 per cent interest by expenditure of $300,000 within an 18-month period.
Marindi said it expects to reach this expenditure milestone during a drilling program currently underway.
Marindi may then earn up to a 70 per cent by spending a further $150,000 (total expenditure $450,000 within a 3-year period) with the ability to purchase 100 per cent under certain terms and conditions.
“We are very pleased to have formally exercised our option to earn up to 70 per cent at the Gem Mining Lease, in the heart of the rapidly emerging world-class Forrestania lithium province, and look forward to recommencement of drilling,” Marindi Metals managing director Joe Treacy said in the company’s announcement to the Australian Securities Exchange.
Recent drilling undertaken at the Forrestania lithium project returned a high-grade lithium intersection of 33 metres at 3.2 per cent lithium oxide (Li2O), including 10m at 4 per cent Li2O.
Marindi noted the granted Mining Lease M77/549 covers several lithium-caesium-tantalum (LCT) pegmatites in the Mt Hope area including the Gem pegmatite, which was mined historically for tantalum, tin and semi-precious gems in the 1980s, and the Giant pegmatite the site of the high-grade intersection referred to above.