Liontown Resources Ltd (ASX:LTR) has entered into an agreement to acquire 100% of the rare metal rights, including lithium and tantalum, at the Kathleen Valley Project in Western Australia.
The project, located 680 kilometres northeast of Perth, is currently held by Ramelius Resources Ltd (ASX:RMS).
Liontown will acquire the mining leases by issuing 25 million ordinary shares, worth $525,000 valued at Liontown’s last traded share price.
Ramelius is presently conducting gold mining operations at the Kathleen Valley Project, which are expected to conclude later this year.
The project contains a spodumene-bearing pegmatite swarm extending 3.5 kilometres by 1 kilometre and represents an advanced lithium exploration opportunity with walk-up drilling targets.
Liontown’s initial focus will be the Mt Mann area, where a publicly available report and previous mapping has documented a swarm of spodumene-bearing pegmatites.
One traverse of rock chip sampling by Liontown across the Mt Mann pegmatite reported results of 3.9%, 1.5%, 1.8% and 1.2% Li2O (for an average of 2.1% Li2O) and an average Ta2O5 value of 195 ppm.
Liontown is planning to commence systematic rock chip sampling across all pegmatites in the 3.5 x 1 kilometre swarm, followed by reverse circulation drilling.
Ramelius will continue to retain exclusive gold rights and uninhibited access for gold-mining related activities.
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