Sayona Mining Ltd (ASX:SYA) is making the first stage option payment to Great Sandy Pty Ltd to acquire a 694 square kilometre package of six tenements in the world-class Pilgangoora lithium district of Western Australia.
The primary focus of exploration over Great Sandy in 2017 has been on the Mallina tenement, where spodumene has been identified.
Corey Nolan, chief executive officer, commented:
"The company is excited by the prospectivity of the Mallina project where new spodumene bearing pegmatites have been recently identified.
"Further exploration and drilling is required to better understand the mineralisation within the complex rare metal pegmatites.
"Mallina is a very prospective province in close proximity to other major spodumene deposits including Pilgangoora and Wodgina."
Option details
The option includes three other project areas comprising five tenements which have only been lightly explored and will be reviewed in detail during 2018.
The Great Sandy purchase terms include an option to acquire an 80% interest in all the tenements by making staged payments in cash or shares at Great Sandy’s election of $300,000 (current payment) within 12 months and $300,000 within 24 months and free carrying Grant Sandy to decision to mine.
At the decision to mine, Great Sandy can either elect to dilute or contribute to ongoing expenditure commitments.
Great Sandy can elect to convert the 20% interest to a 2% gross smelter royalty.