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- Gold Mountain (GMN) proceeds with an initial acquisition of four Brazilian lithium projects following due diligence work
- GMN decided to exercise its option for a 20 per cent stake in the projects after initial rock chip sampling confirmed the presence of lithium caesium tantalum bearing pegmatites
- The company signed an agreement with Mars Mines back in September to acquire up to 75 per cent of the projects and had 60 days to complete due diligence
- Now, it can earn an additional 55 per cent interest by spending $2.75 million over the next two years
- Shares in GMN are down 23.1 per cent trading at one cent at 3:33 pm AEDT
Gold Mountain (GMN) has decided to progress its acquisition of four Brazilian lithium projects following due diligence work.
The project areas include Juremal, Custodia, Cerro Cora and Porta D’Agua, and Jacurici.
After signing a binding heads of agreement with Mars Mines back in September to acquire up to a 75 per cent interest in the projects, GMN had 60 days to complete due diligence work.
The company said the work, which included reconnaissance rock chip sampling, confirmed the presence of lithium caesium tantalum (LCT) bearing pegmatites.
While all but the Jacurici project have been assessed so far, and further sample results are pending, CEO Tim Cameron said the board decided to proceed with the initial 20 per cent acquisition upon receipt of the first ten assay results.
In exercising the option for the 20 per cent stake, GMN was required to gain shareholder approval and pay Mars Mining $570,000 in shares and options.
The company can earn an additional 55 per cent interest in the projects by sole funding $2.75 million over the next two years.
Given no modern exploration has been undertaken on the tenements, GMN sees the identification of LCT pegmatites as significant and said it highlights the potential of the tenements to host lithium-bearing pegmatites.
Planning for an exploration program across Custodia and other tenements is reportedly in advanced stages.
At the same time, landowner access agreements are being formalised which is expected to continue through to December.
In the new year, GMN plans to begin sampling work over as many of the tenements as accessible given weather conditions.
Reconnaissance work is also planned on the Jacurici project.
Shares in GMN were down 23.1 per cent trading at one cent at 3:33 pm AEDT.
