logo-loader
viewFe Limited

Fe Limited to proceed with earn-in of Macarthur lithium and gold tenements in Pilbara

The decision follows successful due diligence on the package with stage I exploration to begin.

Acquisition signpost
FEL will potentially have the biggest landholding of lithium tenements in the country

Fe Limited (ASX:FEL) will proceed with an earn-in of highly prospective lithium and gold tenements in the Pilbara region of WA that are held by Macarthur Minerals Limited (CVE:MMS).

The decision to exercise the option with Macarthur’s wholly owned subsidiary Macarthur Lithium Pty Ltd (MLi) follows completion of due diligence.

With Macarthur advised of the decision, FEL will now proceed with stage I exploration of the tenements.

READ: Fe Limited secures option over large footprint in world-class Pilbara region, shares surge 50%

The Macarthur tenement package provides FEL with access to highly prospective ground in a world-class lithium, gold and base metals province near to major infrastructure.

Early indications suggest one of the tenement package’s leading lithium prospects is the Tambourah project, 80 kilometres from Pilbara Minerals Ltd (ASX:PLS) and Altura Mining Ltd (ASX:AJM).

Site visits and sampling conducted by MLi identified several targets for further exploration with several occurrences of observed pegmatite in outcrop.

Large lithium landholding

The acquisition potentially provides FEL with the biggest landholding of lithium tenements in the country.

The stage I exploration will include extensive mapping focusing on areas where previous exploration  identified occurrences of spodumene, before an extension drilling program is undertaken.

Hillside, Panorama and Bonnie Scot projects are gold prospects within the package that also present exploration upside.

As part of an option agreement with MLi, the parties have agreed that the payment terms of the option exercise fee be extended to August 31, 2019.

FEL and MLi have also agree to cooperate to advance the project and may seek to reduce or otherwise amend the project expenditure commitments in due course, dependent on the results of stage I exploration.

Agreement terms

The option agreement involves FEL earning up to 75% in three stages, the first stage being an initial 25% stake by spending $800,000 and paying $500,000 cash within 12 months.

A further 30% can be earned by spending an additional $750,000 and paying $750,000 in cash or shares within 24 months.

The third stage earning the final 20% requires a further $750,000 expenditure and $750,000 in cash or shares within 36 months of exercise.

Well-funded

FEL is well-funded to advance the agreement after raising more than $750,000 in a recent placement and receiving a royalty payment of $211,729 in relation to mining conducted by Mineral Resources Ltd (ASX: MIN) at its Deception iron ore mine.

Further and increased quarterly royalty payments are expected as mining at Deception ramps up.

Quick facts: Fe Limited

Price: 0.016 AUD

ASX:FEL
Market: ASX
Market Cap: $7.82 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Fe Limited named herein, including the promotion by the Company of Fe Limited in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Fe Limited undertakes capital raising to fund rapid exploration of new...

Fe Limited (ASX:FEL) chairman Tony Sage updates Proactive Investors on the company's recent lithium acquisitions in Western Australia, potentially giving FEL the biggest landholding of lithium tenements in the country.    Sage says an extensive mapping program focusing on...

on 28/5/19

3 min read