THE BOURSE WHISPERER: Plymouth Minerals (ASX: PLH) announced an agreement with Valoriza Mineria SLU, a wholly-owned subsidiary of one of Spain’s largest companies Saycr Vallehormoso, SA, to evaluate and potentially develop the advanced San Jose lithium-tin-tungsten deposit in Spain.
San Jose is located approximately 200 kilometres south of Plymouth’s 80 per cent-owned Morille tin-tungsten project in the Extremadura region of Spain.
The Earn-in and Joint Venture agreement follows discussions from early 2015 between Plymouth and Valoriza Mineria, the latter having selected Plymouth as a partner to evaluate the extensive exploration data and historic feasibility study on San Jose, and conduct further work to evaluate the potential of restarting mining operations focused on lithium with a tin by-product.
Key terms of the Earn-in and Joint Venture Agreement include:
Plymouth can earn 50 per cent through funding €1.5 million to complete technical work within 12 months from granting of regulatory permits (Stage 1);
Plymouth can elect to earn a further 25 per cent (for a total 75%) through completing a Feasibility Study and expending a minimum of €2.5 million within two years of completing Stage 1, with the ability to extend for a further year to complete the study if required;
Plymouth and Valoriza Mineria can then continue on a pro-rata funded JV to develop the project; and
The exploration and development program will be administered jointly, with Valoriza Mineria recognised as a Preferred Contractor for the provision of relevant operational services.
“Over a short period, our company has made great strides into furthering our potash assets on the Atlantic seaboard of Gabon,” Plymouth Minerals managing director Dr Eric Lilford said in the company’s announcement to the Australian Securities Exchange.
“In parallel with this continued potash drive, an opportune event has placed our Spanish ambitions into the spotlight and the Board has reflected on this opportunity as being very attractive to the company and its shareholders.
“This agreement highlights the inherent value in the company’s existing Spanish project and validates the expertise of our Board and management team that are highly experienced in the acquisition, evaluation and development of a mining operation outside of Australia, recognised through its work on the Hemerdon tungsten-tine mine in the UK.
“I am extremely pleased with our team’s efforts in the continued development of Plymouth and believe that we have the capabilities to successfully add shareholder value through efficient and timely work on both the potash and lithium-tin-tungsten assets.”