Monax MiningLtd. said July 18 that it has signed a binding term sheet to earn a90% interest in exploration licenses 29731, 28462 and 30521 in Australia'sNorthern Territory by spending A$1.5 million on drilling activities within 24months.
Samples collected within the project area reported up to7.55% lithium oxide and lepidolite-rich rocks up to 2.39 % lithium oxide.
At the completion of the farm-in period, the vendor can sellthe remaining 10% interest to Monax for an agreed amount or for fair marketvalue, or sell the remaining stake to a third party — but not before offeringMonax the option to purchase the interest.
The vendor may also enter into an unincorporated joint venturewith Monax during which time the vendor will be free carried until a decisionto mine.
Upon a decision to mine, the vendor has the option toco-fund expenditure based on a respective 10% interest or convert the interestto an ongoing net smelter royalty of 2% for all mineral sales derived from theproject.
A detailed sampling program will begin at the area withinweeks, Monax said.