Neometals (ASX: NMT) has struck a deal with Metals X to expand Neometals' Mt Marion lithium project in WA.
Under the binding MoU, Neometals will lease the lithium mining rights over a portion of Metals X's Hampton Area Location 53 Project, which adjoins Mt Marion. Neometals also proposes to acquire an adjoining mining lease and infrastructure from Metals X.
Metals X will retain the gold rights on the tenements in the agreement.
The deal has been struck through Neometals' 70%-owned subsidiary Reed Industrial Minerals, which is 30%-owned by Mineral Resources.
Neometals said the deal would enable it to explore and develop extensions of its lithium deposits, which are located on the Mt Marion-Hampton Area boundary. It said drilling showed the orebody remained open, suggesting the lithium continued across the boundary.
Metals X will be paid a royalty of $2 a tonne of ore mined and 1.5% of the gross sales value of any concentrate produced. Metals X will also receive $90,000 a year in rent and a one-off payment of $250,000 for the infrastructure package.
Under the binding MoU, Neometals will lease the lithium mining rights over a portion of Metals X's Hampton Area Location 53 Project, which adjoins Mt Marion. Neometals also proposes to acquire an adjoining mining lease and infrastructure from Metals X.
Metals X will retain the gold rights on the tenements in the agreement.
The deal has been struck through Neometals' 70%-owned subsidiary Reed Industrial Minerals, which is 30%-owned by Mineral Resources.
Neometals said the deal would enable it to explore and develop extensions of its lithium deposits, which are located on the Mt Marion-Hampton Area boundary. It said drilling showed the orebody remained open, suggesting the lithium continued across the boundary.
Metals X will be paid a royalty of $2 a tonne of ore mined and 1.5% of the gross sales value of any concentrate produced. Metals X will also receive $90,000 a year in rent and a one-off payment of $250,000 for the infrastructure package.