Marquee Resources Limited (MQR) and Mineral Resources Limited (MinRes) have agreed to accelerate the Farm-In Agreement at the West Spargoville Project (WSP).
MinRes has recently obtained an initial 25% stake in the lithium rights at WSP by supporting exploration efforts at WSP for ~$4,800,000 in less than a year. MinRes also contributed $500,000 to the execution of the Fyfehill option. MQR has agreed to accelerate the Farm-In Agreement to acknowledge MinRes’ commitment to the Project and to further strengthen the companies’ collaboration. As a result, MQR and MinRes have agreed to form an unincorporated Joint Venture (JV) comprising MQR (75%) and MRL (25%).
According to MQR, MinRes is a known expert in developing and managing hard rock lithium mines in Western Australia. As Marquee’s JV partner at WSP, it brings a substantial technical, operational, and financial capability to the West Spargoville Lithium Project.
“I am pleased to announce the acceleration of the Farm-In Agreement, reflecting the significant progress we have made with Mineral Resources (ASX:MIN) at the West Spargoville Project. We signed our partnership agreement with MinRes less than one year ago and have formed a very close working relationship with the team there during this period. By accelerating the Farm-In agreement and officially forming this JV with MinRes, we hope to further capitalise on the extensive knowledge and technical capabilities that they have. We are confident that this is only the beginning of a promising discovery and development journey between the two companies,” MQR Executive Chairman Charles Thomas said.
Additionally, if MinRes chooses to proceed with the Processing Farm-in. In that case, it can acquire a further 45% legal and beneficial interest in the lithium rights by supporting the Project until a final investment decision on a mine development for the Project (FID) is made within 5 years. MinRes will provide the JV with entire mine-to-port services, including mining, design, building, and management of a processing facility, on-site power generation, haulage of products to nominated port facilities, product marketing, and transportation of products to customers.
Furthermore, suppose MinRes chooses to proceed with the Mine Gate Sale Farm-in. In that case, it can acquire an additional 26% legal and beneficial interest in the lithium rights by supporting the Project until the development, building, and commissioning of a mine and related infrastructure are completed within 5 years. MinRes will construct, own, and manage all mining plants, equipment, and infrastructure and purchase lithium-bearing ore from the JV for a mine gate selling price to be determined on commercially competitive and industry standard conditions.
MinRes will continue to cover all exploration and development expenditures at WSP until a Processing or Mining Final Investment Decision is reached.
