THE BOURSE WHISPERER: Pilbara Minerals (ASX: PLS) strengthened its position in the Pilgangoora lithium district of Western Australia, by entering into a binding agreement with next door neighbours, Dakota Minerals (ASX: DKO) to acquire 100 per cent of the adjoining Lynas Find lithium project.
Under the agreement, Pilbara will acquire the core Lynas Find granted tenements package for $4 million, which includes the newly-minted maiden Indicated and Inferred Mineral Resource, Dakota reported to the market this week of:
7.3 million tonnes at 1.25 per cent lithium oxide (Li2O), 85ppm tantalum pentoxide (Ta2O5) and 0.99 per cent iron (III) oxide (Fe2O3).
Pilbara will be required to make an additional $1 million payment on the granting of a term extension on one of these core tenements.
Pilbara has also agreed to pay a further $750,000 each, for four additional Pilgangoora exploration tenements currently under application by Dakota Minerals.
Pilbara said this strategic acquisition will further expand the company’s resource inventory at the 100 per cent-owned Pilgangoora lithium-tantalum project, which already comprises Indicated and Inferred Mineral Resources totalling:
128.6 million tonnes at 1.22 per cent Li2O, 138ppm Ta2O5 and 0.63 per cent Fe2O3.
“This further consolidates our lithium footprint in the Pilbara region and reinforces Pilgangoora’s position as the dominant project in this exciting emerging lithium province,” Pilbara Minerals managing director and CEO Ken Brinsden said in the company’s announcement to the Australian Securities Exchange.
“The acquisition provides the potential for additional new high-grade satellite ore feed to the central processing plant at Pilgangoora, based on the initial Mineral Resource for the Lynas Find project reported this week.
“Importantly, these additional tonnes are located close to surface and are at an attractive average grade, which would enhance our overall resource and future reserve inventory.
“The Dakota tenement package also contains numerous prospective new areas for lithium exploration, helping to strengthen our longer term growth pipeline.
“Importantly, this deal also gives us access to a strategic land-holding in close proximity to the existing Pilgangoora resource area, which may be suitable for the location of key infrastructure components for the Pilgangoora project – enhancing our development plan.”