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- Avira Resources (AVW) enters a binding option agreement with GTT Ventures to acquire a 100 per cent interest in the Yule River lithium project in Western Australia
- Previous work at the project has intersected up to 2.45 per cent lithium oxide, 127 parts per million tantalum pentoxide and 448 parts per million tin
- Consideration for the proposed acquisition consists of a non-refundable cash payment of $150,000 and a $1 million cash or shares payment
- Avira also announces it will be undertaking a $2 million equity placement, with the funds to be used for progressing exploration activities at its new and existing projects
- AVW shares up 8.33 per cent to 0.7 cents
Avira Resources (AVW) has struck a binding option agreement with GTT Ventures to acquire a 100 per cent interest in the Yule River lithium project about 120 kilometres south of Port Hedland in the Marble Bar region, Western Australia.
The project consists of three blocks covering an area of 9.5 square kilometres and neighbours significant landholders in the region including Albemarle Corp (ALB), Pilbara Minerals (PLS) and Fortescue Metals Group (FMG).
Previous rock chip sampling work at Yule River has intersected up to 2.45 per cent lithium oxide, 127 parts per million tantalum pentoxide and 448 parts per million tin, according to Avira.
Avira has secured the option to acquire Yule River within a six-month exclusivity period.
“The addition of this project to the exploration portfolio provides us with a fantastic opportunity to develop a project that is located in a known province for this essential material for the production of lithium-ion batteries which in turn occupies an increasingly important position in the renewable energy space,” Executive Director David Deloub said.
Consideration to GTT for the acquisition includes a non-refundable exclusivity fee of $150,000 cash and a further $1 million in cash or Avira shares upon the option being exercised.
The deal is subject to certain conditions including Avira receiving all necessary shareholder approvals and the execution of a final form heritage agreement by GTT and Kariyarra Aboriginal Corporation.
Avira also announced it has received firm commitments to undertake a $2 million share placement to sophisticated and professional investors.
A total of 400 million shares will be issued at 0.5 cents each, which represents a 20 per cent discount to Avira’s closing price of 0.6 cents on February 11.
The funds will be used to progress Avira’s existing and new exploration projects and for general working capital.
AVW shares were trading 8.33 per cent higher at 0.7 cents at 2:18 pm AEDT.
