Alien Metals forms strategic lithium joint venture with Errawarra Resources
Alien Metals (AIM: UFO), a company renowned for its focus on mineral exploration, has announced a promising joint venture with Errawarra Resources Ltd (ASX: ERW) to develop the lithium potential of the Pinderi Hills Project in Western Australia. This collaboration marks a strategic move to enhance lithium exploration while allowing Alien Metals to continue its development on other mineral fronts such as iron ore and platinum group metals at its Hancock and Pinderi Hills projects.
Under the terms of the agreement, Errawarra Resources has committed to invest up to A$4 million to earn a 50% interest in the lithium rights at the Pinderi Hills Project. The initial investment includes a A$500,000 payment through a subscription for 130,000,000 new common shares in Alien Metals. This investment will fund the initial exploration and development activities over the next 60 months, with specific spending milestones set to define the partnership’s progress.
The Pinderi Hills area is noted for its geological potential, hosting a major ultramafic/mafic complex that is considered highly prospective for lithium-bearing pegmatites. This region is part of a growing lithium province in West Pilbara, known for its significant mineralization and comparable to the notable LCT pegmatites found in the nearby Andover Complex.
Errawarra’s commitment to the joint venture includes comprehensive exploration plans, aiming to delineate and develop the lithium resources within the Pinderi Hills Project. The exploration strategy is guided by geological insights indicating the presence of lithium pegmatites linked to the Orpheus suite of rocks, a key indicator of lithium emplacement.
Guy Robertson, Executive Director of Alien Metals, emphasized the strategic importance of this partnership, stating, “This farm-out of the lithium mineral rights to Errawarra provides Alien with the opportunity to expand its multi-commodity portfolio while continuing to focus on the development of its core projects.”
The collaborative framework of the joint venture ensures that both Alien Metals and Errawarra Resources will share the development costs and benefits proportionally after the initial investment phases. The agreement also includes protective clauses for both parties, ensuring a balanced and equitable partnership as the project progresses.
Following the issuance of the new shares and the completion of regulatory formalities, Alien Metals will see its total issued share capital increase, a change that shareholders will need to monitor for any adjustments in their investment or interest notifications.