Venus Metals Corporation Limited (ASX:VMC) has completed the sale of its non-core Poona Lithium-Caesium-Tantalum (LCT) project in WA’s Murchison region to eMetals Ltd (ASX:EMT).
eMetals has acquired a 100% legal and beneficial right, title and interest in WA mineral tenement E20/896 and a 90% legal and beneficial right, title and interest in tenement E20/885.
The project is prospective for LCT type pegmatite mineralisation hosted within the greenstone belts of the Weld Range and remains lightly explored with 42 holes drilled on E20/885 and no known drilling on E20/896.
Under the terms of the acquisition agreement, eMetals has acquired the tenements for the collective purchase consideration of:
- A$15,000 paid on the execution of the agreement;
- A$145,000 paid on the Settlement Date (June 17, 2020);
- The assumption of Venus Metals' existing joint venture arrangement with Bruce Legendre in relation to E20/885, which entitles Legendre to a free carried 10% interest until such time as eMetals decides to mine on that tenement;
- A royalty to Venus Metals of 50 cents per tonne of ore extracted for mining purposes from E20/896, payable only on and from commercial mining on that tenement; and
- Two royalties which together aggregate to a 1.5% net smelter royalty to historical explorers and prospectors on E20/885, payable only on and from commercial mining on that tenement.
The agreement also covers performance payments of up to A$100,000 subject to and conditional upon the achievement of the following performance milestones:
- A$50,000 payable upon the definition of an inferred mineral resource of not less than 200,000 tonnes of lithium oxide or equivalent at 1% on either tenement; and
- A$50,000 payable upon the definition of a probable mineral ore reserve of not less than not less than 200,000 tonnes of lithium oxide or equivalent at 1% on either tenement.