Pilbara Minerals buys neighbouring lithium stake

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 26 Oct 2016   Posted by admin


Exploration drilling in the Pilgangoora lithium region.

 

By Cameron Drummond

 

THE purchase of Dakota Minerals’ Lynas Find lithium project has further strengthened Pilbara Minerals’ position in the Pilgangoora lithium district.

Pilbara Minerals will fork out up to $8 million for Dakota’s stake, which adjoins its existing lithium tenements in the region.

Under the agreement, the company will pay $4m cash up front for Dakota’s core Lynas Find package, plus an additional $1m on the granting of a term extension on one of the core tenements.

A further $750,000 for each of an additional four exploration tenements currently under application by Dakota will be paid in either cash or shares.

Pilbara Minerals managing director Ken Brinsden said the acquisition of Lynas Find secured the eastern and northern extensions of the same prolific pegmatite swarm which hosts the key lithium-tantalum deposits at Pilgangoora.

“This further consolidates our lithium footprint in the Pilbara region and reinforces Pilgangoora’s position as the dominant project in this exciting emerging lithium province,” Mr Brinsden said.

“The acquisition provides the potential for additional new high-grade satellite ore feed to the central processing plant at Pilgangoora, based on the initial mineral resource for the Lynas Find Project reported this week.

“Importantly, these additional tonnes are located close to surface and are at an attractive average grade which would enhance our overall resource and future reserve inventory.

“The Dakota tenement package also contains numerous prospective new areas for lithium exploration, helping to strengthen our longer term growth pipeline.”