Blaze International Ltd (ASX:BLZ) has entered into an option agreement to acquire the Marble Bar Lithium Project in the East Pilbara region of Western Australia.
Blaze will join Pilbara Minerals Ltd (ASX:PLS) and Altura Mining Ltd (ASX: AJM) in a region which is becoming a hub for lithium activity, following the discovery of world-class pegmatite deposits.
The Marble Bar Lithium Project consists of four exploration licence applications covering 370 square kilometres.
Blaze will pay an initial cash option fee of $200,000 to Great Sandy Pty Ltd, an entity owned and controlled by well-known Pilbara prospector Denis O’Meara.
Blaze can acquire the project by paying an additional $500,000 and issuing 25 million ordinary shares (worth $1.7 million as per Blaze’s last traded price) plus 75 million performance shares.
Reconnaissance exploration has identified a pegmatite swarm at the project with a strike length of 3.5 kilometres within a 4 kilometres wide corridor.
Spodumene and Lepidolite mineralisation associated with the pegmatites has been identified within this corridor.
Rock chip sampling has returned peak values of 3.72% Li2O and 3.32% Li2O with an average of 1.85% Li2O across 22 samples.
Blaze will complete a technical due diligence of the project, including detailed geological mapping and geochemical sampling, during the three-month option period.
The company is planning to raise $750,000 in new equity capital from wholesale and sophisticated Investors via a private placement to fund the acquisition.
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