Alba Mineral Resources plc has signed a 30-day option to buy an initial 50% of the Andover West lithium project in the West Pilbara, Western Australia.
SIGNIFICANT
The project comprises exploration licence E47-3373 (AW1), of 10 blocks over 10.9 square miles, due to expire on 4 November 2024 with the right for the licence holder to extend the term.
Exploration licence application ELA47-4844 (AW2) contains four blocks over 4.95 square miles immediately to the east of AW1.
Alba said that a significant amount of lithium exploration in recent years in neighbouring tenements had included the discovery at the Andover project immediately east of AW2 of “numerous thick, high-grade lithium intersections”.
“Favourable geology within the optioned licences is indicative of the significant lithium potential of the Andover West lithium project,” added the company.
“The adjacent West Pilbara lithium project has identified mineralisation within pegmatites in the Roebourne group basalts. These basalts are also present in the optioned licences.”
If Alba exercises its option it will pay £250,000 in Alba shares at a premium of 25% above the VWAP of Alba ordinary shares in the 15 trading days prior to the exercise of the option, plus one-for-one attaching 12-month share warrants at an exercise price of 0.2p per share.
An unincorporated joint venture would also be formed for exploration of the project’s lithium rights, with each party contributing to expenditure on a pro rata basis.
Alba will be appointed manager with ultimate responsibility for setting budgets and work programmes.