Marquee Resources Limited (MQR) has announced a partnership with Mineral Resources Limited as a joint venture across the West Spargoville Project in Western Australia.
The binding term sheet will allow the exploration for and development of lithium deposits.
The West Spargoville Project is located in the core of the Southern Yilgarn Lithium Belt; a prominent lithium area that is well known for spodumene deposits that include: the Bald Hill Mine, the Mt Marion Mine, the Buldania Project and Essential Metals Pioneer Dome Project.
Mineral Resources (MinRes) is a recognised leader in the construction and operation of hard rock lithium mines in Western Australia and brings tremendous technical, operational and financial capacity to the West Spargoville Lithium Project (WSP).
Marquee Executive Chairman, Charles Thomas, said Marquee was looking forward to the new partnership.
“We are partnering with one of the most innovative and leading mining service companies and one of the world͛s largest lithium producers,” Mr Thomas said.
“Mineral Resources has an excellent track record and reputation and I am very pleased that a company of their calibre sees the same potential at WSP as the team at Marquee Resources and I do.
“We look forward to rapidly generating drilling results from the highly prospective WSP Project and sharing them with our shareholders.”
A closer look at the term sheet:
- MQR and MinRes have entered into a legally binding term sheet for a Farm-in and joint venture agreement at the West Spargoville Project in Western Australia
- The agreement is conditional on MinRes completing due diligence on the Project within four weeks
- MinRes has the right to acquire an initial 25 per cent legal and beneficial interest in the lithium rights (Initial Farm-in Interest) by funding all exploration and development activities and completing a feasibility study for the project, including a JORC compliant resource (Initial Farm-in Obligation) within 24 months (Initial Farm-in Period)
- In performing the Initial Farm-in Obligation, MinRes will fund: at least $1,000,000 of exploration and development activities on the Tenements by 31 December 2022; and the $500,000 cost to exercise the Fyfehill Option
- MQR will be responsible for managing the implementation of the exploration and development activities on the Tenements during the Initial Farm-in Period.
Potential Processing Farm-in
If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 45 per cent legal and beneficial interest in the lithium rights by funding the project until the point of a final investment decision on a mine development for the project. MinRes will provide complete mine to port services to the joint venture including: mining; design, construction and operation of a processing plant; on-site power generation; haulage of product to nominated port facilities; marketing of product and shipment of product to purchasers.
Mine Gate Sale Farm-in
If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 26 per cent legal and beneficial interest in the lithium rights by funding the project until the development, construction and commissioning of a mine and related facilities. MinRes will build, own and operate all plant, equipment and infrastructure for the mining operations and buy lithium bearing ore from the JV for a mine gate sale price to be established on commercially competitive and industry standard terms.
