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Gold Mountain (ASX:GMN) poised to acquire 75pc interest in Salinas II project

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ASX:GMN      MCAP $13.73M
20 December 2022 08:55 (AEDT)

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Gold Mountain (GMN) has penned a deal to secure a 75 per cent interest in the Salinas II lithium tenements in Brazil.

The company executed a conditional agreement with Mars Mines for seven exploration licenses in the Salinas II project area, considered highly prospective for lithium.

The assets comprise four granted licenses and three licenses under application, which together span 2964 hectares.

The company will acquire the 75 per cent stake through the issue of 125 million shares to Mars Mines, who will be free-carried to a decision to mine.

Following the completion of the free-carried period, both parties have agreed to fund joint venture activities pro-rata to their respective interests.

Historical mining of the site displayed evidence of wide laterally extensive, high-grade, lithium-cesium-tantalum-type pegmatites in the region.

Gold Mountain said it plans to explore and advance these prospects in tandem with its other four lithium projects in Brazil in which it owns a stake.

Gold Mountain’s Chief Executive Officer and Executive Director, Tim Cameron, said the company is thrilled to build on its Brazil-based lithium exploration project book.

“The Mars Mines team has already developed a model for the area and believe that there are undiscovered pegmatites in the Salinas II area which have little or no surface expression,” he said.

Moving forward, Mr Cameron said the company had planned to begin exploration in the new area in early 2023.

In other news, the company requested a trading halt of its shares pending the release of a capital raise announcement.

Gold Mountain shares last traded at 0.9 cents at 3:40 pm AEDT.

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