Ann: LTR sells non-core tenements ahead of new lithium campaign, page-2

Liontown sells non-core tenements at Kathleen Valley ahead of new lithium campaign   


Divestment provides additional funding, reduces costs and allows Liontown to focus on priority lithium targets as part of upcoming drilling program in early 2018  Liontown Resources Limited (ASX: LTR) advises that it has elected to divest a number of non-core tenements at its Kathleen Valley Lithium Project in WA to neighbouring gold companies Draig Resources and Ramelius Resources following a geological review of the broader project area.   


Liontown acquired the lithium and related metal rights for the Kathleen Valley Project from Ramelius Resources Limited (RMS) in late 2016, with subsequent exploration work confirming the prospectivity for significant lithium mineralisation within extensive spodumene-bearing pegmatites located in the northern part of the project area.   The Company is planning to commence a major new exploration campaign targeting the lithium potential in this northern area early next year.   A review of the rest of the tenement package has identified a number of non-core tenements considered to have low prospectivity for spodumene-related lithium mineralisation.  


The Kathleen Valley comprises 15 contiguous Mining Leases (“MLs”), of which 11 will be divested. The divestment will be completed in two parts. The sale of 7 MLs to Draig Resources Limited (Draig) for 1,000,000 Draig shares and $25,000 cash; and The cancellation of all mineral rights held by Liontown Resources for 4 MLs and the return of their title to Ramelius Resources in accordance with the terms of the original Sale Agreement.  Completion of both transactions is conditional on the execution of a number of Deeds of Assignments with respect to third party interests and obligations. The sale to Draig is also conditional on certain ministerial approvals and consents.  


The Kathleen Valley Project is located 680km north-east of Perth between Leinster and Mt Keith. Since acquiring the Project, Liontown has defined extensive spodumene-bearing pegmatite swarms located close to modern transport, energy and camp infrastructure.  Initial drilling intersected wide zones of lithium mineralisation (up to 58m @ 1.2% Li2O) and further drilling is planned for the first Quarter of 2018 pending receipt of statutory access permits.


  Following the sale of the tenements at Kathleen Valley, Liontown will have cash and investments totalling approximately $5.5million meaning that the Company is well positioned to rapidly progress exploration at its key lithium projects in WA.