- eMetals (EMT) has completed the acquisition and settlement of the Poona Project from Venus Metals (VMC)
- On June 11, eMetals entered a binding sale and purchase heads of agreement to buy a full interest in one Poona tenement and 90 per cent in another
- eMetals has already paid $160,000 to VMC, with future payments due based on the production performance at the project
- Interestingly, Poona and the surrounding area is largely unexplored for lithium and pegmatite mineralisation
- eMetals has dropped 14.3 per cent on the market and shares are trading for 1.2 cents each
eMetals (EMT) has completed the acquisition and settlement of the Poona Project from Venus Metals (VMC).
On June 11, eMetals entered a conditional binding sale and purchase heads of agreement to acquire 100 per cent of the rights, title, and interest in tenement E20/896, and a 90 per cent interest in tenement E20/885.
This purchase falls in line with eMetals’ strategy of acquiring or investing in rare metals projects that complement its portfolio.
eMetals has already paid Venus $160,000, with $15,000 paid on the execution of the agreement and $145,000 on the settlement date, which was yesterday.
The company will also pay Venus a royalty of 50 cents per tonne of ore extracted from tenement E20/896.
In regards to the second tenement, E20/885, two royalties will be owed to historical explorers and prospectors, making up a combined net smelter royalty of 1.5 per cent.
Finally, eMetals will owe an additional $100,000 based on performance payments with $50,000 payable if an inferred mineral resource of at least 200,000 tonnes of lithium oxide is defined at either tenement.
The remaining $50,000 will be paid if a probable mineral ore reserve of at least 200,000 tonnes of lithium oxide grading one per cent is defined at either tenement.
Poona project
The Poona Project is located approximately 70 kilometres northwest of Cue in the Murchison Domain of the Yilgarn Craton in Western Australia.
The project is prospective for LCT (lithium-caesium-tantalum)-type pegmatite mineralisation. Despite the wider area being explored since the 1900s, not until recently has it been targeted for lithium and pegmatite mineralisation.
Poona itself remains even more lightly explored, with 42 holes drilled at the E20/885 tenement and none at E20/896.
eMetals has dropped 14.3 per cent on the market and shares are trading for 1.2 cents each at 1:38 pm AEST.