Zenith Minerals has regained a 100 per cent interest in key lithium projects across Western Australia following an earn-in agreement falling through with EV Metals Group (EVM) .
The company is set to regain full ownership over its Split Rocks and Waratah Well lithium projects, located in the Forrestania greenstone belt and Murchison region of WA respectively.
In January 2022, Zenith granted a subsidiary of EVM the opportunity to earn a 60 per cent interest in the projects.
In exchange, EVM was to solely fund the completion of a feasibility study before January 2024.
The feasibility study had to have a minimum mineral resource of 35 million tonnes of 1.2 per cent lithium oxide and be capable of producing 330,000 tonnes of spodumene concentrate.
It was also stipulated that the grade of lithium oxide not be less than six per cent for a minimum 10-year period.
If EVM failed to complete the feasibility study prior to January 10 2024, then it would be deemed to have withdrawn from the earn-in and the agreement would terminate.
EVM did not carry out any significant on-ground exploration activity at Zenith’s Split Rocks and Waratah Well lithium projects in 2023 that satisfied the terms of the agreement.
That means that from yesterday, January 10, the projects returned to Zenith.
The tenements have always been retained by a wholly owned subsidiary of Zenith, so there are no additional administrative steps required for the company to regain full ownership and control.
EVM will now have to pay approximately $1 million in outstanding refunds to Zenith for tenement rents and rates, Zenith staffing costs, and other exploration costs incurred by the company over the last two years.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
