MPJ takes next step on Pilbara Plan
Mining Projects Group (ASX:MPJ) has taken the next step on its journey to being a lithium-gold player, completing due diligence on the Lynas Finds Assets project in the Pilbara region of WA.
At the end of January, the ASX-listed junior which had been primarily focused on nickel at Roe Hills decided to move to acquire the project from Tyranna Resources (ASX:TYX) AND Tribal Mining.
The project is right next door to Pilbara Minerals’ (ASX:PLS) lithium-tantalum project, which has a resource of 52.2 million tonnes of lithium oxide at 1.33%.
It is also next door to Altura Mining’s (ASX:AJM) lithium project totalling 26.06Mt @ 1.2% Li2O.
The Lynas project, which will become known as the Pilbara Lithium Gold Project, has produced 125,000 ounces of gold between 1994 and 1998. Trafford Resources had firmed up a resource of 933,400 tonne resource at 1.65 grams per tonne for 49,515/oz.
It is believed there has been no significant exploration for lithium at the project in the past.
The terms of the deal, which is slated to be voted on by shareholder in early April involves MPJ paying TYX an initial $220,00 ($20,000 of which is non-refundable), along with the issue of 200 million shares and 100 million options to TYX and Tribal.
Another 100,000 shares will be issued once mining tenements are issued, with all shares and options escrowed for 12 months.
There are also incentives under the deal, with MPJ to give out another 80,000 shares a mineral resource of at least 5 million tonnes at 1.2% Li2O or 500,000 ounces of gold is proved up, while a 15 million tonne lithium resource or 1,000,000 ounces of gold will trigger another 80 million shares.
Meanwhile, MPJ has started an evaluation of an existing JORC resource as this was under the 2004 guideline instead of the 2012 version.
While the deal still needs to be voted on, MPJ said it would be in a position to outline an exploration program and a corporate strategy for the asset “in the near future”.