Lanthanein Resources Ltd (ASX:LNR, OTC:FRNRF) has inked a variation deed to extend the timeline for earning a 50% legal and beneficial interest in the Lady Grey Project, on tenement E77/2143 in Western Australia.
The extension, agreed upon with Gondwana Resources Ltd and other stakeholders, grants Lanthanein an additional six months in exchange for a payment of A$200,000.
Extra time
This extension tackles delays in approvals from the WA Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) for the grant of programs of work, which are necessary for planned drilling activities.
In addition, delays in scheduling heritage surveys for the proposed drilling areas have compounded the timeline challenges.
Lanthanein says the extra time would allow it to complete its drilling program, assess assay results and evaluate the project’s potential before deciding whether to advance to the next stage of the farm-in agreement.
The original agreement, announced on December 6, 2023, allows Lanthanein, through its subsidiary West Kidman Pty Ltd, to acquire up to a 70% interest in the Lady Grey Project through staged exploration expenditures and payments.
Two-stage process
Stage 1 Earn-In: Lanthanein must spend a minimum of A$7 million on exploration activities over 42 months from the earn-in start date.
This includes specific milestones:
- A$1 million within the first 18 months;
- a cumulative total of A$3.5 million within 30 months; and
- two cash payments of A$500,000 each at the 18-month and 30-month marks.
The company also retains the discretion to withdraw from the agreement within the first 12 months, provided it reimburses Gondwana A$1 million minus exploration costs incurred.
Stage 2 Earn-In: To increase its interest to 70%, Lanthanein must fund all exploration, feasibility studies and development work required for a decision to mine within 7.5 years.
This phase also includes a final A$2.5 million milestone payment.
If Lanthanein completes Stage 1 but elects not to proceed with Stage 2, a joint venture agreement will be executed with Gondwana for further exploration and development.
Vendor option variation
Under a separate agreement with Syndicate Minerals Pty Ltd, acting on behalf of the project’s Option Vendors, Lanthanein agreed to extend the timeline for issuing shares as consideration for the project farm-in.
The revised terms include:
- 100 million fully paid ordinary shares to be issued 18 months from the commencement date;
- 166.67 million shares to be issued at 30 months; and
- 166.67 million shares to be issued at 42 months.
These issuances are conditional on Lanthanein not withdrawing from the farm-in agreement.
The company says that all other material terms of the agreement remain unchanged, with this extension providing the necessary flexibility to complete its exploration activities effectively.