Under the terms of the agreement, Altura has an exclusive right to explore for lithium over a five year period on Kairos’ Wodgina East tenements.
In return, Altura is to make an upfront cash payment of $100,000 to Kairos.
In addition, Altura may choose to acquire a 75% interest in the Wodgina East tenements by spending a total of $1.25 million over five years.
Altura can also choose to acquire the project any time during the five years by paying $1.25 million less the cost of any exploration or mining expenditure undertaken by Altura on the tenements.
If Altura takes up these rights, then Kairos will retain a 25% free carried interest in the tenements.
With the Pilgangoora Lithium Project progressing at a rapid pace, Altura had begun looking to expand its lithium portfolio, both around the mineral rich Pilgangoora area and further afield.
A definite feasibility study for Altura’s Pilgangoora Lithium Project In September has projected a pre-tax net present value of $411 million and a payback period of 1.8 years.
The Agreement with Kairos allows Altura to explore the prospectivity of the Wodgina East Project with a small initial capital investment and the cooperation of a similarly focused partner in the region.
Wodgina East is strategically situated adjacent to Mineral Resources Ltd’s (ASX:MIN) Wodgina Tantalum-Lithium Project.
It includes an extensive pegmatite field with well-documented lithium (spodumene) mineralisation and grades of up to 1.6% lithium reported from historical reconnaissance rock chip sampling.
Altura Mining Ltd teams with Kairos Minerals for Wodgina East lithium
Published: 11:00 28 Nov 2016 AEDT