Core Lithium has expanded its portfolio by acquiring the Shoobridge project in Northern Territory from Newmont Exploration.
Located approximately 80km south of Core’s wholly-owned Finniss lithium project, Shoobridge was the site for the first discovery of tin-bearing pegmatites in the NT in 1882, while the project is also prospective for tantalum.
However, Core sees Shoobridge’s lithium potential as the major drawcard and will be the first company to explore the project for the in-demand battery metal.
“While we are firmly focused on developing the Finniss lithium project, we are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities,” Core managing director Stephen Biggins said.
“The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding lithium production from the project as lithium prices continue to rise.”
The tenement sale and purchase agreement will see Core, through its subsidiary Lithium Developments, purchase Shoobridge from Newmont Exploration, a subsidiary of Newmont Corporation, for $250,000 plus a royalty.
The royalty regards a two per cent net smelter return royalty on all gold, lithium and uranium extracted from the tenement. Core has a right to buy-back the royalty for $10 million.
The agreement will be subject to approval from the NT Government through the Mineral Titles Act 2010, with either party able to terminate the agreement if government consent is not received by July 1.
Despite Shoobridge’s long history of mineral exploration, little of it has focused on lithium. On completion of the transaction, Core will focus its drilling efforts on pegmatites such as Barretts and Two Bobs.
The Shoobridge project is also prospective for other commodities including lead, silver, zinc and uranium.