MinRes to dig for lithium in gold mine
afr.comMineral Resources has made another lithiumacquisition less than a week out from the company’s annual general meeting, where billionaire founder Chris Ellison is expected to shed some light on the strategy behind a spate of recent deals.
MinRes is paying up to $60 million plus royalties to secure lithium, nickel, copper and cobalt rights to Pantoro Limited’s Norseman gold project in Western Australia under a deal unveiled on Friday.
Mineral Resources boss Chris Ellison is expected to provide more insight into the company’s lithium strategy at the annual general meeting on November 16.
Pantoro’s Norseman project is close to the Bald Hill lithium mine and processing infrastructure, and the Mt Marion operations owned by MinRes and China’s Ganfeng, in an area dubbed the lithium “corridor of power” by former Delta Lithium boss David Flanagan.
MinRes is closing in on the acquisition of Bald Hill, with all eyes on an independent expert’s valuation as shareholders in Singapore-listed Alita Resources agitate for a price that reflects recent valuations placed on exploration projects through a flurry of takeover activity.
Perth-headquartered MinRes will pay $30 million up front to Pantoro. The remaining $30 million is tied to a final investment decision on starting a nickel, copper and/or cobalt mining operation.
It is understood the deal is essentially about lithium for MinRes, with little chance it will diversify into the other metals. The deal continues lithium land grabs by MinRes in the Goldfields and adjoining Yilgarn region, and in the Pilbara.
Pantoro managing director Paul Cmrlec wished MinRes well with exploration campaigns in and around the Norseman project.
“This transaction provides Pantoro with strong immediate value
Read more on afr.com
