Mineral Resources (MinRes) has boosted its WA lithium presence even further by acquiring a range of critical minerals rights at Pantoro’s Norseman gold project.
A binding agreement, involving a $60 million cash payment plus royalties, sees MinRes become the new owner of any lithium, nickel, copper and cobalt ground at Norseman.
Pantoro was attracted by the transaction’s financial incentives.
“This transaction provides Pantoro with strong immediate value for minerals which have not yet been identified in economic quantities at Norseman,” Pantoro managing director Paul Cmrlec said.
“Realisation of value from the assets allows Pantoro to continue to concentrate on production and exploration of its gold assets, with potential value from platinum group elements retained for future consideration.”
The transaction will see MinRes pay $30 million upfront and $30 million when a final investment decision is made on any mining operation related to the critical minerals.
Pantoro will retain a two per cent net-smelter royalty on all nickel, copper and cobalt recovered, alongside a 0.75 per cent lithium royalty.
The deal comes hot on the heels of MinRes’ $19 million investment in Wildcat Resources’ $100 million capital raise on Thursday. This enables MinRes to maintain its 19.94 per cent major shareholding in Wildcat.
Wildcat believes it’s in the midst of a significant lithium discovery at the Tabba Tabba lithium project in the Pilbara region of WA, having only completed its own acquisition of Tabba Tabba in mid-October.
Notable drilling results at the project in recent weeks include a 180m hit at 1.1 per cent lithium oxide from 206m, and an 85m intersection at 1.5 per cent lithium oxide from 133m deep.
MinRes was also a participant in Develop Global’s acquisition of Essential Metals and its Pioneer Dome lithium project in WA, recently voting in favour of the acquisition at a shareholder vote.
MinRes was Essential Metals’ largest shareholder before Essential delisted from the ASX on Tuesday.
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