Mineral Resources (MinRes) and Galileo Mining have completed a deal that will see lithium exploration begin in earnest at the Norseman project in Western Australia.
MinRes has bought 30 per cent of Norseman for $7.5 million, with $5 million having now been paid.
“With completion of the MinRes lithium joint venture agreement, lithium exploration will now begin at the Norseman project,” Galileo managing director Brad Underwood said.
“MinRes have an incredible depth of experience in the lithium business and have secured the rights to work on our untested lithium potential at Norseman.
“In return Galileo shareholders will benefit from a focused program of lithium exploration while the company continues to concentrate on the extensive potential for nickel, PGEs, and gold in the same region.”
If the project proves fruitful, MinRes will have the option to increase its stake to 55 per cent for an additional $15 million.
That number will increase to 70 per cent should a decision to mine be reached, which MinRes will solely fund.
Drilling programs have been underway at the project prior to the deal, with follow-up drilling scheduled for August.
“Our recent drill results show more prospective palladium and platinum zones within close proximity to geophysical anomalies,” Underwood said.
“Our exploration strategy follows a cyclical pattern with campaign drilling, review and interpretation of results, integration of new information, and then more drilling.
“We believe this cycle of exploration activity gives us the best opportunity of making further discoveries in a fundamentally unexplored tenement package.”
Galileo will retain ownership of tenements at Norseman, as well as the rights to nickel, PGEs and all minerals other than those contained within the lithium pegmatites.
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