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Alchemy Resources Ltd (ASX:ALY) has gained approval from a Federal Government body for its farm in and joint venture agreement with Japan Organization for Metals and Energy Security (also known as JOGMEC) relating to lithium exploration near Kalgoorlie.
The government’s Foreign Investment Review Board (FIRB) has signed off on the lithium-focused JV, which will include parts of the Roe Hills target areas covering 248 square kilometres of Alchemy’s Karonie Lithium and Gold Project (itself covering 694 square kilometres).
This territory is believed highly prospective for lithium of a style similar to Global Lithium Resources Ltd’s (ASX:GL1) Manna deposit, which is found in the adjacent tenure.
According to the JV, JOGMEC will be able to earn a 51% interest by spending $6,000,000 by 31 March 2029 with a minimum expenditure commitment of $600,000 by 31 March 2025.
Upon approval of work programs by the JV partners, soil sampling and geophysics are set to be rolled out at the site.
Alchemy CEO James Wilson said he was pleased with the government’s endorsement of this arrangement.
“This is a fantastic outcome for Alchemy, and we thank JOGMEC and the Australian Foreign Investment Review Board for such a speedy turnaround, being less than two months since the application was submitted,” he said.
“The approval now paves the way for Alchemy to progress work on the Roe Hills Project, fully funded and supported by JOGMEC’s investment.”
Alchemy has been trading flat at 0.7 cents.
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