St George Mining Ltd (ASX:SGQ) has entered into a binding area of influence (AOI) agreement with Cacique Resource Pty Ltd to potentially acquire an interest in lithium and nickel rights within a 30-kilometre area of the Mt Holland lithium and nickel province.
Cacique is a private company with a long history of operating in the Mt Holland region.
The agreement involves consideration of some $150,000 in cash and more than 3 million shares (subject to shareholder approval) and gives SGQ an option to acquire 80% of lithium and nickel rights of any tenement Cacique applies for or acquires in the AOI.
Gaining more nickel and lithium exposure
“We are very pleased to have concluded the binding agreement for this opportunity which relates to part of the world-class Mt Holland-Forrestania lithium and nickel province,” St George Mining executive chair John Prineas said.
“The agreement provides St George with an option to potentially acquire a foothold in this highly prospective region and to further build upon St George’s high-quality portfolio of lithium and nickel projects in Western Australia.
“As we prepare to resume drilling at our Mt Alexander lithium project in a matter of days, we are also excited to have expanded our project pipeline into one of the most significant addresses in WA for hard-rock lithium and nickel sulphide mineralisation.”
Read: St George Mining gets boots on the ground as hunt for Mt Alexander lithium resumes
Interpreted geological map showing the 30-kilometre radius area of influence and known lithium and nickel occurrences and deposits along the greenstone belt.
SGQ is particularly interested in the Early Grey lithium project owned by Covalent Lithium, a joint venture between Wesfarmers Limited and Sociedad Química y Minera de Chile S.A. (SQM).
The AOI is believed to cover a section of the Forrestania nickel belt’s strike, which supports the tenure’s prospectivity for nickel and compliments St George’s portfolio of nickel and lithium projects in Western Australia.