Liontown Resources will move to the stage one earn-in phase of the two-stage farm-in agreement it shares with Olympio Metals that concerns the Mulwarrie lithium project.
The Mulwarrie lithium project is located 120km northwest of Kalgoorlie, in the eastern Goldfields region of Western Australia.
In April, Liontown reached an agreement with Olympio Metals to allow Liontown to farm into the Mulwarrie and Mulline lithium prospects, which are part of Olympio’s Goldfields project.
Under the agreement, Liontown needed to complete 1100 soil samples across both projects over a four-month period, as part of the agreement’s stage-one minimum commitment.
Once this stage had been reached, Liontown had the option to earn-in, committing $400,000 to exploration in both projects and earning a 51 per cent interest. Alternatively, it could withdraw from the endeavour completely.
Liontown exceeded the requirement by collecting 1201 samples from the Mulline and Mulwarrie prospects between June–October 2023.
Olympio said the Mulwarrie and Mulline prospects are considered prospective for lithium-caesium-tantalum (LCT) pegmatite mineralisation, with lithium mineralisation identified in the region.
“We are very pleased that Liontown has decided to progress the farm-in agreement following the return of promising results from the soil sampling program,” Olympio Metals managing director Sean Delaney said.
“Olympio still retains significant exposure to any discovery success, as the company has the ability to contribute to funding and remain at 49 per cent once the stage one farm in is completed.”
Once Liontown has earned a 51 per cent interest in the Mulwarrie and Mulline prospects following the completion of the stage one, Olympio can elect to end the farm-in agreement and form a joint venture with Liontown. Liontown would become the joint venture’s manager.
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