- Eastern Iron (EFE) enters a heads of agreement with Amery to purchase a 100 per cent interest in the Trigg Hill Project in Western Australia
- Trigg Hill comprises one exploration licence application which covers five blocks and is known to contain hundreds of pegmatite outcrops
- EFE will pay Amery $10,000 in cash and $20,000 in shares within seven days of the tenement being granted to earn an option for an initial 12 months
- To exercise its option to acquire the project during the option period, Eastern Iron will pay Amery $250,000 in cash and either $500,000 in cash or shares
- Company shares were up 7.14 per cent to trade at 1.5 cents
Eastern Iron (EFE) has entered a binding heads of agreement with Amery Holdings to purchase a 100 per cent interest in the Trigg Hill Project.
The project is in the Pilbara region of Western Australia and lies 75 kilometres southeast of Pilbara Minerals’ (PLS) Pilgangoora Lithium-Tantalum mine.
Trigg Hill is made up of one exploration licence application which covers five blocks and is known to contain hundreds of pegmatite outcrops. The licence is expected to be granted in the December quarter.
Chairman Eddie King was pleased to have entered the heads of agreements.
“Eastern Iron intends to gain exposure to the lithium market by acquiring the Trigg Hill Lithium Project, with known curlew pegmatites in a world class jurisdiction with nearby existing infrastructure,” he said.
The company will pay Amery a cash option fee of $10,000 and $20,000 worth of shares within seven days of the tenement being granted.
Following this, EFE will earn a 12-month option but can extend this period in 12-month intervals on up to three occasions. To do so, the company will need to give Amery a written notice and pay a $15,000 fee by cash, shares, or both.
To complete the transaction and acquire a 100 per cent interest, Eastern Iron will pay Amery $250,000 in cash and either $500,000 in cash or shares.
Amery will be entitled to a royalty payment equivalent to the value of 1.5 per cent of net smelter return on all minerals produced from the tenement.
Further, Eastern Iron must conduct at least 800 metres of drilling within 15 months of the grant date.
To assist with exploration, the company engaged Mark Calderwood who has 30 years’ exploration and mining experience which includes more than seven years in pegmatite minerals.
Company shares were up 7.14 per cent to trade at 1.5 cents at 11:08 am AEST.