Morella Corporation and Elevra Lithium expand WA exploration JV

• Morella to earn a 51% interest in the four additional projects
• Interest to cost $300,000 of exploration expenditure over two years
• Morella will become manager and operator of additional projects
• Existing JV will be expanded to include all-minerals rights across the tenure

Morella Corporation (ASX: 1MC) has entered into an indicative, non-binding term sheet with longstanding joint venture partner Elevra Lithium (ASX: ELV) to expand the parties’ existing WA exploration arrangements.

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The proposed transaction will add four WA exploration projects to the existing joint venture arrangements and broaden the scope of the joint venture to include all-minerals rights across the existing JV tenure and the additional projects, with the existing mineral rights arrangements at Mallina and Mt Edon remaining unchanged.

Under the agreed terms, Morella will have the exclusive right to earn a 51% participating interest in the additional projects by incurring $300,000 of qualifying exploration expenditure over two years.

Morella will assume responsibility for management and operation of the additional projects from commencement.

Following completion of the earn-in, Elevra will retain a 49% participating interest, with the parties thereafter contributing to expenditure in proportion to their respective Joint Venture interests.

Morella MD, James Brown, said the proposed transaction builds upon the existing Morella-Elevra JV and provides Morella with exposure to a broader portfolio of exploration opportunities across established mineral provinces in WA.

“Morella and Elevra have worked together in Western Australia for a number of years and we see this as a sensible evolution of that relationship,” Mr Brown said.

“The transaction provides Morella with additional exploration opportunities that complement our existing portfolio while allowing Elevra to retain meaningful exposure to any future exploration success.

“Our investment will be directed into exploration, with Morella earning its interest by putting $300,000 into the ground over the next two years and taking responsibility for managing and advancing the projects.”

Mr Brown told shareholders that Mt Dove is an initial priority, but we will take a disciplined approach to the broader portfolio, reviewing the historical datasets and ranking future expenditure against the other opportunities within Morella’s portfolio.”

The additional projects comprise a combination of previously explored and earlier-stage tenure, supported by existing geological, geophysical, geochemical and drilling datasets that will be made available to Morella as part of the transaction.

Morella intends to undertake a detailed review of the available technical information and establish a prioritised exploration programme following completion of the transaction.

1MC is steady at 2.9¢. Mkt cap $12.81M.

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