Scorpion Minerals has raised $3 million for its WA lithium growth plans. Pic via Getty Images
Scorpion secures funding for lithium growth strategy
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- Oversubscribed $3 million capital raising to fund Scorpion’s upcoming exploration plans in the East Murchison
- High-grade lithium mineralisation of up to 3.19% Li2O previously intersected at 177km2 Youanmi project
- Scorpion to also consider “new strategic opportunities” in the lithium sector
Special Report: Scorpion Minerals has pocketed $3 million from an oversubscribed placement to expedite exploration at the company’s Youanmi and Pharos lithium projects in Western Australia, while contemplating other opportunities in the sector.
Lithium-focused Scorpion Minerals (ASX: SCN) is now funded to undertake proposed exploration programs across its tenure in the East Murchison, beginning with plans to follow up on recent drilling success at the Youanmi project.
High-grade lithium mineralisation up to 3.19% Li2O was intersected down-dip of stacked pegmatites as part of Phase 1 RC drilling which comprised 14 holes for 2158m. Pegmatites were intersected in all holes up to 11m thickness.
Shallow east-dipping stacked LCT pegmatites were also confirmed to be hosted along 3km of strike and extending to a minimum of 175m below surface.
Parallel pegmatites have been intersected east and west of the central zone, increasing the width of the Youanmi corridor to at least 850m.
Huge lithium appetite satiates exploration strategy
CPS Capital and Merchant Capital Partners acted as joint lead managers to the oversubscribed $3 million capital raising.
Scorpion chief executive Michael Fotios said the company was encouraged by the level of investor demand in the placement.
“Following the completion of this capital raising, Scorpion is extremely well positioned to harness this investor interest and unlock considerable value from its portfolio over the coming months,” he said.
“Our targeted drilling programs completed at Youanmi so far have shown the potential scale and high-grade nature of the project. This drilling has delivered a vast amount of technical data and we are currently in the process of integrating this into our maiden JORC resource estimate for the project.”
Looking beyond Youanmi
Scorpion’s exploration programs to be rolled out over the balance of this quarter and into next year include infill RC drilling of the existing Youanmi exploration target and maiden RC drilling at Pharos focused on the Poona East and West prospects.
Diamond drilling is also planned over the recently declared exploration target of 7.6-13.6Mt @ 1-1.4% Li2O for the central 900m of the existing Youanmi mineralised trend.
“Importantly, mineralisation remains open in all directions at Youanmi and we are confident that further drilling in the near-term will add to the scale of the project,” Fotios said.
“Western Australia is currently the hottest address globally for hard rock lithium exploration and development.”
Other upcoming activities are initial metallurgical test work, extensional RC drilling of the exploration target down-dip and along strike and follow-up geological mapping and rock chip sampling at Pharos and Youanmi.
Scorpion will also reserve some funds from the placement to assess new strategic opportunities in the lithium sector “as they arise”.
This article was developed in collaboration with Scorpion Minerals, 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.
