Calidus Resources has acquired 50% in a new Pilbara lithium exploration company, called Pirra Lithium Pty Ltd.
The new lithium exploration company will be equally owned by Calidus and Haoma Mining with tenements and lithium rights covering 1,063km2.
Calidus will contribute the first $1 million of funding for exploration and manage the exploration using existing infrastructure in the Pilbara area and a further $1 million in scrip at an issue price equal to the 5- day VWAP to Haoma as compensation for previous exploration.
“Pirra Lithium creates a highly-leveraged exploration opportunity for our shareholders. There is clearly potential to unlock substantial value by exploring what is highly prospective lithium ground in one of the world’s best lithium provinces,” said Calidus Managing Director Dave Reeves in an ASX Announcement.
“We can capitalise on this opportunity without it having any impact on our core asset at Warrawoona, where we are on track to pour first gold in the coming quarter. As part of this strategy to create additional value for our shareholders while maintaining our sharp focus on Warrawoona, we are establishing a separate dedicated team to pursue this lithium opportunity.”
The company controls the 1.7Mozs (including Blue Spec) Warrawoona Gold Project located in the East Pilbara district of the Pilbara Goldfield in Western Australia.