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Small cap, mineral exploration company, Lightning Minerals (ASX:L1M) has finalised a definitive agreement to acquire Bengal Mining (Bengal).
Shareholders have responded favourably, with shares up as much as 49 per cent so far.
Bengal will operate through its wholly owned subsidiary Tigre Mineracao, possessing option agreements for two lithium projects, Caraibas and Sidronio, located in Brazil’s renowned Lithium Valley district in Minas Gerais.
“We believe in the lithium thematic and see it as a great opportunity to acquire highly prospective projects in known and established lithium regions… the project presents some excellent early indicators of lithium mineralisation with prospective underlying geology that offers clear exploration targets,” Lightning Minerals Managing Director Alex Biggs said.
“It’s exciting to see the company developing and expanding our influence, we now have projects in three of the predominant lithium regions in the world: Dundas in Western Australia, Quebec in Canada, and Minas Gerais in Brazil,”
“We look forward to starting our on-ground works in Brazil and also progressing works on our other projects in Western Australia and Canada,” Biggs said.
The projects, span 3,372 hectares and encompass seven exploration licenses, strategically located in the Lithium Valley region of Minas Gerais, Brazil.
As Brazil’s third-largest economy, Minas Gerais boasts a significant mining sector, with over 300 operating mines, including mining giants Vale, BHP, and Rio Tinto.
Renowned as one of the world’s premier lithium districts, this region offers abundant exploration opportunities.
The company will leverage access to a seasoned ground team, providing fieldwork expertise and insights, enhancing its strategic approach to exploration. Existing relationships in the region will facilitate project growth and advancement.
Field work is set to commence upon deal completion and approval.
L1M opened the market trading at 8 cents.
L1M last traded at 11 cents.
