Dakota Minerals Ltd. said Oct. 6 that Pilbara Minerals Ltd. will acquire the company's Lynas Find lithium project in Western Australia for up to A$8 million.
The group will pay A$4 million cash on completion, A$1 million cash when exploration license E45/3648 is extended and up to A$3 million in cash or shares upon the granting of certain exploration licenses over a period of up to 12 months after signing.
Proceeds from the binding agreement will allow Dakota Minerals to accelerate its European-focused lithium strategy.
Completion of the sale is conditional on several conditions related to due diligence by Pilbara, licenses transfer and Dakota reporting a JORC-compliant mineral resource of a certain size to the ASX.
Dakota in the week reported a maiden resource at the project of 7.3 million tonnes at 1.25% lithium oxide, 85 parts per million tantalum pentoxide and 0.99% iron(III) oxide in the indicated and inferred category. This would be sufficient to fulfill the resource condition of the deal.