Pilbara Minerals extends lithium area
Pilbara Minerals has widened its footprint with a deal to take control of what it describes as one of WA’s best lithium exploration projects.
Under a farm-in and joint venture agreement announced with Atlas Iron, Pilbara Minerals will acquire up to 80 per cent of the Mt Francisco lithium-tantalum project, 50km south-west from its flagship Pilgangoora project in the Pilbara.
“With the addition of Mt Francisco . . . we believe Pilbara now has ownership of the two best lithium exploration assets in the world-class Pilgangoora district,” Pilbara Minerals chief executive Ken Brinsden said.
Under the agreement, which was announced last week with the foundations of a deal to share infrastructure with Atlas, Pilbara Minerals will take an initial 51 per cent of Mt Francisco for a payment of $2.3 million in cash or shares.
That would rise to 70 per cent by Pilbara Minerals spending $1 million on exploration in the first year.
It would then be able to earn an additional 10 per cent of Mt Francisco on completion of a definitive feasibility study and a decision to mine.
Additionally, Pilbara Minerals said it had struck a nonbinding memorandum of understanding under which Atlas would provide access, processing, bulk handling and haulage services to Pilbara Minerals for Pilgangoora.
Drilling at Pilbara Minerals' Pilgangoora lithium-tantalum project near Port Hedland.