Gold Mountain just scooped up more potentially lithium-rich ground in Brazil
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Busy junior Gold Mountain continues to bolster its lithium exploration portfolio in Brazil with a new acquisition.
Gold Mountain (ASX:GMN) has the attention of investors since spreading its wings into Brazilian lithium exploration in September, with the share price up 50% on much higher than usual volumes.
It has now doubled down on its initial foray with a deal for 75% in a package of seven highly prospective lithium exploration licences in the Salinas II Project area in eastern Brazil.
This 9,264ha landholding is in the Eastern Lithium Belt of Brazil, where historical artisanal mining and more recently, modern exploration by Latin Resources (ASX:LRS) have discovered wide laterally extensive high grade, long strike length, lithium-caesium-tantalum (LCT) type pegmatites.
In December, LRS defined a maiden 13.3Mt at 1.2% lithium resource at the nearby Colina deposit after only 10 months of drilling.
The vendor, Mars Mines, has already developed a model for the area and believes there are undiscovered pegmatites in the Salinas II area which have little or no surface expression, CEO and exec director Tim Cameron says.
“We are thrilled to further build on our Brazil-based lithium exploration project book, with the planned acquisition of a 75% interest in seven tenements within the Salinas II Project area,” he says.
“These licences, four of which we are already authorised to undertake research activities, are located close to tenements held by Latin Resources that have identified significant lithium resources hosted in LCT pegmatites.”
Gold Mountain will commence exploration in the highly prospective Salinas II area in early 2023, Cameron says.
“Assuming shareholder approval is forthcoming for this transaction, we intend undertaking a range of exploration activities at these Salinas II Project assets over the coming 12 months that hopefully prove up their prospectivity,” he says.
“All this while the Mars – Gold Mountain joint venture team will progress the planned exploration program across the four Brazil-based projects we recently acquired a 20% holding in (and come with significant earn-in upside).”
The deal will see vendor Mars Mines paid 125m Gold Mountain shares for the 75% interest in Salinas II.
Gold Mountain will free-carry Mars’ 25% interest in the project until a decision to mine is made, after which both parties will fund development activities pro-rata.
The proposed transaction is subject to shareholder approval, to be sought at an upcoming Extraordinary General Meeting (EGM), Gold Mountain says.
This article was developed in collaboration with Gold Mountain (ASX:GMN), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.