- Australasian Metals Limited (A8G) signs an agreement with Prodigy Gold NL (PRX) to acquire a 90 per cent interest in the Burrow Creek lithium project
- The agreement includes five tenements covering approximately 880 square kilometres in the Arunta pegmatite province, Northern Territory
- Australasian will pay $150,000 cash for part ownership of the joint venture with Prodigy Gold’s 10 per cent interest to be free carried until completion of a pre-feasibility study with an NPV exceeding $100 million
- After completing the study, Prodigy Gold will have the ability to elect to convert its interest into a one per cent net smelter royalty, or pro-rata fund its interest in the project
- Australasian Metals shares bounced 14.3 per cent to 68 cents, while Prodigy Gold shares slipped to 3.3 cents
Australasian Metals Limited (A8G) signs an agreement with Prodigy Gold NL (PRX) to acquire a 90 per cent interest in the Burrow Creek lithium project.
The agreement includes five tenements covering approximately 880 square kilometres in the Arunta pegmatite province, Northern Territory.
Australasian will pay $150,000 cash for part ownership of the joint venture.
Prodigy Gold’s 10 per cent interest will be free carried until completion of a pre-feasibility study with an NPV exceeding $100 million.
After completing the study, Prodigy Gold will have the ability to elect to convert its interest into a one per cent net smelter royalty, or pro-rata fund its interest in the project.
The location of the tenements is roughly 100 kilometres northeast of the company’s Mt Peake Lithium project.
The tenements are situated on privately-owned land, with good road and railway access.
There are historical tin-tantalum occurrences recorded across several tenements.
Access to most of the project area is through the Stuart Highway to the north and then using the Ali Curung to Jarra Jarra track.
Reliable fair-weather access to most of the individual sites is via a series of established pastoral and historical exploration gravel tracks
Australasian Metals shares were in the green by 12 per cent to 67 cents at 1145 AEDT, while Prodigy Gold shares were down 3 per cent at 3.3 cents.