Dart Mining NL (ASX:DTM) has entered into an earn-in agreement for the Dorchap Lithium Project in northeast Victoria with Sociedad Química y Minera de Chile, via its wholly-owned subsidiary SQM Australia Pty Ltd.
On June 23, Dart Mining announced encouraging drilling results for the project, which includes 10 metres at 14.5% spodumene, the primary ore mineral mined globally for hard-rock lithium deposits.
Mineralogical analyses have determined that spodumene is the primary lithium mineral in the lithium-caesium-tantalum (LCT) pegmatite dykes of the Dorchap Range.
Global lithium partner
SQM is a world-leading lithium miner and producer with commercial offices in 20 countries and customers in more than 110 countries. It is involved in a 50/50 joint venture at the Mt Holland Lithium Project in Western Australia, partnering with Wesfarmers.
Dart Mining has given SQM the obligation-free right to sole-fund exploration expenditure of A$12 million over the next six years.
During the first earn-in period, SQM may earn an initial 30% interest in the Dorchap Lithium Project by sole-funding exploration expenditure of A$3 million for the next three years.
Subject to meeting its initial funding obligations, and during the second and third earn-in periods, SQM may elect to sole fund exploration expenditure of a further A$9 million in aggregate over two further periods totalling three years to earn a further 40% interest in the project.
SQM may, at any time after it has earned an initial 30% interest in the project, elect to enter into a joint venture agreement with Dart Mining – and cease earning a further interest – on terms to be agreed. If that occurs, each party will be liable to fund their expenditure commitments in proportion to their percentage interests in the project.
Dart Mining will be the initial manager of the project during the earn-in phase.
“World-class technical and operational expertise”
“Dart Mining is delighted to be partnering with SQM on the further exploration of its Dorchap Lithium project. The collaboration with SQM brings world-class technical and operational expertise to a very worthy exploration target," said Dart Mining chairman James Chirnside.
“Dart Mining was the first exploration company to discover lithium on the East Coast of Australia in 2016. Through Dart’s persistence and early exploration efforts, the project is finally getting the recognition it deserves.
“We have a clear pathway for project exploration through to the next stage, and our partnership with SQM will ensure that we are able to both attain that objective and enhance our knowledge and understanding of the project within an accelerated timeframe.”
SQM executive VP for lithium Carlos Díaz said: “We are looking forward to this new endeavour with Dart to find and potentially develop the first lithium project in Victoria.
“We believe that the combination of both partners’ strengths and expertise will factor in the success of this partnership.”