LithiumAustralia NL and Cazaly Resources Ltd. have combined their current andfuture lithium mineral interests within a 100-kilometer radius of Kalgoorlie,Western Australia, for an initial period of five years to form the GoldfieldsLithium Alliance.
The 50/50 alliance will include all interests of bothcompanies within the designated area, and Lithium Australia will grant accessto the alliance to its wholly owned Sileach process, the companies said May 2.
The alliance will grant Cazaly 50% of Lithium Australia'srights to the Coolgardie rare metals venture, which is contiguous withCazaly's recentlyannounced Kangaroo Hills lithium project.
Lithium Australia owns the Coolgardie venture withFocus Minerals Ltd.and includes the historic lithium production centers of the Lepidolite Hill andTantalite Hill mines. It has the rights to all metals derived from pegmatiteson the property and will free-carry Focus Minerals a 20% interest until adecision is made to commit to feasibility.
Under the agreement, Cazaly will not be liable for any costsassociated with metallurgical testwork or feasibility studies for theCoolgardie venture, and will be borne solely by Lithium Australia.