Cauldron Energy Ltd. agreed to acquire the Pippingarra and the Marble Bar lithium projects in Western Australia, covering 360 square kilometers in total, from Mercury Resources Group Pty. Ltd.

The company will issue 40 million shares, 40 million options, 60 million performance shares, pay A$500,000 cash and issue a 1% net smelter royalty, it said Oct. 5.

As part of the deal, Mercury will be entitled to nominate a director to Cauldron's board.

The company plans to kick off a comprehensive exploration program immediately after completion of the transaction.

Cauldron recently granted Oceltip Metals Pty. Ltd. an option to earn up to a 60% interest in the Yanrey North tenements adjacent to the former's Yanrey uranium project in Western Australia.