PERTH (miningweekly.com) – ASX-listed junior Pioneer Resources has entered into an option agreement to acquire a 90% interest in the Donnelly lithium project, in Western Australia.
Under the terms of the agreement, an initial payment of A$10 000 was due for an exclusive option, and would pay the vendors A$1-million in cash on the exercise of the option.
The vendors could then enter into a joint venture (JV) agreement with Pioneer and contribute to any further expenditure on a pro-rata basis, or revert their interest into a 1.5% royalty.
If Pioneer withdraws from the option, a A$25 000 payment would be due to the vendor, while a further yearly payment of A$35 000 would be due on an extension of the option.
Pioneer told shareholders on Tuesday that the Donnelly project was considered prospective for lithium contained in spodumene-bearing pegmatites, which was similar to those intersected at Pioneer’s recently acquired Mavis lithium JV, in Canada, and targeted at the Phillips River lithium project, also in Western Australia.
The Donnolly project is readily accessible through a network of roads and forestry tracks, while other utilities such as water and power were located close by.
Edited by: Creamer Media Reporter
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