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Wesfarmers inks $45m deal for lithium rights at Davyhurst, where pegmatites trend into Olympio’s Mulwarrie tenure
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- Wesfarmers purchases 65% of Ora Banda Mining’s Davyhurst lithium rights in a pivotal farm-in deal
- Davyhurst is adjacent to Olympio’s Mulwarrie lithium project, which is subject to farm-in agreement with Liontown Resources
Wesfarmers has inked a deal worth $45m that will see it acquire lithium rights at Ora Banda Mining’s Davyhurst project, adjacent to Olympio Metals’ Mulwarrie lithium tenements in WA’s Eastern Goldfields mining district.
The Eastern Goldfields are becoming a significant focus for lithium exploration and development and host to several operating mines such as Mt Marion, Mt Cattlin and Bald Hill, as well as a bunch of others proposed for development or already under construction.
Wesfarmers (ASX:WES), under its subsidiary Wesfarmers Chemical, Energy & Fertilisers (WesCEF), has now paid $26m cash plus a 2% royalty to acquire 65% of the rights and will form a JV with Ora Banda Mining (ASX:OBM).
It also has the option to spend $15m on exploration over three years to bump that share up to 80%.
Lithium trending into Mulwarrie
Gold is the main focus for OBM at Davyhurst, yet a three-hole exploration program at its Federal Flag prospect in April intersected spodumene at 1.28% Li2O 10km south of the Davyhurst plant and trend towards Olympio Metals (ASX:OLY) Mulwarrie tenure.
Outcropping pegmatites are known to trend into OLY’s ground.
“The OBM-WesCEF transaction highlights the value that existing producers and offtake partners are placing on securing lithium exploration ground in this region,” OLY MD Sean Delaney says.
Mulwarrie is being explored as a farm-in agreement with Liontown Resources (ASX:LTR) which has paid $400,000 for rights to earn 51% of the project while OLY retains significant exposure to discovery success.
As part of a minimum commitment, Liontown completed a geochemistry program across the package, with results currently being assessed.
This article was developed in collaboration with Olympio Metals, 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.
