Neometals Limited (ASX: NMT) – $0.084
07 Jul 2015
Neometals Limited’s (ASX: NMT) 70% owned subsidiary Reed Industrial Minerals Pty Ltd has completed the transaction with Metals X Limited (ASX: MLX) over Mount Marion Lithium Project located in southern Western Australia (Figure 1).
Figure 1. Location of Mount Marion Lithium Project
Under the Agreement, Reed Industrial Minerals has agreed to lease the lithium mining rights over a portion of the Hampton Area Location 53 that adjoins the Mount Marion Lithium Project and to purchase an adjoining mining lease and associated infrastructure from Metals X.
Further details of the Agreement include:
- The Lease fee will be $90,000 per annum indexed to CPI.
- A royalty of $2/tonne of ore mined and processed from the land area as well as a 1.5% NSR on the sale of any products generated from mining and processing from the land area.
- Metals X will sell outright to the company Mining Lease M15/717 and remaining infrastructure for the purchase price of $250,000.
Mining services provider Mineral Resources Limited (ASX: MIN) owns the remaining 30% of Reed Industrial Minerals and funds and operates the project through its subsidiary Process Minerals International Pty Ltd.
Completion of this transaction will allow the company to explore and develop extensions of the No 2 and No 2 West Lithium Deposits located on the northern boundary of the Mount Marion Project (Figure 2).
Figure 2. Geology over existing tenure (red) with lease area (blue) and tenements being purchased (green)
For further information, visit www.neometals.com.au
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