Australian miner Bass Metals Ltd. finalized its acquisition of the high-grade Millie's Reward lithium project in Madagascar. Phase-one exploration will start immediately and is expected to take six months to complete.
The company announced a binding agreement for the deal with Ruby-Red Madagascar SARL in mid-April.
Bass Metals said Dec. 12 that the transaction includes two permits and a mineral rights agreement for a third permit covering exploration and mining of lithium and associated economic minerals.
The company will pay an aggregate US$400,000 in cash and US$200,000 of shares in four equal installments. The first payment is due on the acquisition of the permits and completion of the deal.
The other three payments are due upon the definition of resources of more than 5 million tonnes grading more than 1.5% lithium oxide, the completion of a feasibility study and initial sales of either direct shipping ore or lithium concentrates grading more than 6% lithium oxide.
The vendor will also retain a 0.25% concentrate sales royalty on any future lithium concentrate or direct shipping ore sales from Millie's Reward, effective for 12 years from the initial sale and capped at US$2 million.
Citing previous field work, Bass Metals said the site hosts significant spodumene mineralization with 55 separate pegmatites defined along 8 kilometers of strike and consistent surface mineralization grading up to 7.08% lithium oxide.
