- Gold Mountain (GMN) and Mars Mines have revised an agreement regarding their joint venture lithium projects in Brazil
- GMN currently holds a 20 per cent stake in the assets and, under the original agreement, would have had to fund $2.75 million to earn a further 55 per cent interest
- This term has been scrapped, and GMN will now pay Mars Mines $300,000 in cash to increase its stake to 75 per cent, with Mars to retain a 25 per cent free-carried interest
- In the next few weeks, senior Gold Mountain staff will travel to Brazil to plan exploration work at the projects to identify drill targets
- GMN shares are trading grey at 0.6 cents at 3:26 pm AEDT
Gold Mountain (GMN) is set to significantly increase its interest in five Brazilian lithium projects following a revised joint venture agreement with Mars Mines.
The junior explorer has “reworked” its agreement with Mars Mines, effectively restructuring and simplifying the original joint venture deal signed in September 2022. This deal gave Gold Mountain the option to acquire up to a 75 per cent interest in the Juremal, Custodia, Cerro Cora and Porta D’Agua, and Jacurici projects.
In November, the company decided to exercise its option to acquire an initial 20 per cent stake in the Brazilian assets for $570,000 in shares and options. To earn an additional 55 per cent, GMN had to sole fund $2.75 million over the next two years, but this term has now been removed.
As per the revised agreement terms, Gold Mountain will now pay Mars Mines $300,000 in cash to immediately acquire the other 55 per cent stake. Mars will remain free carried for its 25 per cent holding until a decision to mine is made.
Gold Mountain Managing Director and CEO Tim Cameron said he was “delighted” by the revised terms, which align with those for the recently announced Salinas II transaction.
“This reworked arrangement which has us taking a 75 per cent holding in these assets, is clearly in the best interests of our shareholders. It will allow a more efficient and effective way to manage our substantial Brazilian lithium interests going forward,” Mr Cameron said.
As a result of the arrangement, which will become effective on January 31, Gold Mountain will manage the Brazilian lithium assets in-house under a newly-created business unit. The joint venture will still utilise Mars Mines’ expertise in lithium exploration.
Senior Gold Mountain staff will soon travel to Brazil to plan a staged exploration program to identify drill targets.
GMN shares were trading grey at 0.6 cents at 3:26 pm AEDT.