Perth-based mineral exploration company Pioneer Resources Limited has entered into an Option Agreement to acquire 90% interest into the Donnelly Lithium Project located in the world-class Greenbushes Mineral Field in Western Australia.
The project extends from 12km to 60km from the Greenbushes Lithium Mine, which hosts the world’s largest pegmatite hosted lithium resource. It covers approximately 220km2 and comprises two exploration licence applications (E70/4826 and E70/4829).
The Donnelly Project is considered prospective for lithium contained in spodumene-bearing pegmatites of the Lithium-Caesium-Tantalum (LCT) geochemical family. It is readily accessible through a network of main, regional roads and forestry tracks for access, and water, power, and a skilled work force is close-by.
According to the ASX release by Pioneer, the terms of the agreement include:
- An initial payment of$10,000 for an exclusive option to transact on the Tenements once granted;
- When the Tenements the subject of current applications are granted or if Pioneer withdraws from the option, it will pay the Tenement holders $25,000;
- Annually thereafter, Pioneer to pay a $35,000 annual option extension payment to the Vendor, and keep the tenements in good standing;
- Pioneer may exercise the option to acquire a 90% interest in the Tenements at any stage for $1,000,000 after which
- The Vendor may enter into a JV and contribute to further expenditure on a pro-rata basis (being 10% under these circumstances); or to revert to a 1.5% royalty.
