Mila Resources PLC (LSE:MILA) told investors that its associate Liontown Resources (ASX:LTR) is slated to start its exploration for lithium at the Kathleen Valley gold project, in Western Australia.
Liontown has commissioned an aerial imagery survey, as part of work to comply with heritage and environmental regulations, ahead of a programme of sampling and drilling works.
It has, as previously announced, identified several lithium targets in the northern and central areas of the project.
Mila will, meanwhile, be able to access and conduct gold and base metal test work from the drilling core provided by Liontown’s drilling – which is expected to significantly reduce the overall cost and timeframe of Mila's exploration activities within the coincident areas.
"Liontown's lithium exploration activities in the northern part of our Kathleen Valley Project will provide direct benefits to Mila and will provide invaluable data to us as we plan our next phase of exploration across the wider project area, and begin targeting the concentrated zones of high-grade gold mineralisation identified in our recent drill programme,” Mila executive chair Mark Stephenson said in a statement.
"We look forward to receiving Liontown's data and analysis in the coming weeks and will continue to report back to shareholders as in due course."
Mila also today noted that it has agreed with Liontown an amendment to the terms of the convertible loan note issued in July 2023, and under the new terms Mila will convert A$100,000 of principal into 5.147 million shares priced at 1p each. Mila additionally agreed to issue warrants for a further 5.147 million shares exercisable at 2p per share.