- Liontown Resources (LTR) has executed a binding term sheet with Lachlan Star (LSA) to acquire a 51 per cent interest in the Koojan Project in WA
- To acquire the 51 per cent, Liontown can spend $4 million on exploration within a five year period
- Once it has received the interest, Liontown’s landholding will more than double from 467 square kilometres to 1068 square kilometres
- In a busy morning, Liontown has also announced it will sell its Killaloe Gold Project to Lachlan Star for 40 million LSA shares
- Multiple drill-ready targets have already been identified and Liontown will receive a one per cent net smelter royalty for all minerals produced by Lachlan Star
- Both agreements are expected to be completed in Q1 2021
- Liontown is up a slight 1.11 per cent on the market and shares are trading at 45.5 cents
Liontown Resources (LTR) has executed a binding term sheet with Lachlan Star (LSA) to acquire a 51 per cent interest in the Koojan Project.
To acquire the 51 per cent stake, Liontown can spend $4 million on exploration within a five year period.
Once it has satisfied the $500,000 minimum spend, Liontown may withdraw from the agreement before it reaches a 30 per cent holding.
Once it has received the 51 per cent interest, Liontown’s landholding will more than double from 467 square kilometres to 1068 square kilometres.
The 600-square-kilometre Koojan Project lies in the New Norcia region of Western Australia, around 130 kilometres north-northeast of Perth.
Furthermore, the project neighbours the western boundary of Liontown’s Moora Project where extensive gold-nickel-copper-platinum group element (PGE) anomalism has been identified.
Initial results from drilling at Moora confirmed the potential for significant bedrock mineralisation with up to 1.9 per cent copper and 0.5g/t gold returned.
Planning is now underway to undertake an auger sampling program at the project, with work to begin once access agreements have been finalised with landowners.
In a busy morning, Liontown has also announced it will be selling its Killaloe Gold Project to Lachlan Star for 40 million LSA shares.
Multiple drill-ready targets have already been identified and Liontown will receive a one per cent net smelter royalty for all minerals produced by Lachlan Star.
Both agreements are expected to be completed in Q1 2021.
Liontown is up a slight 1.11 per cent on the market and shares are trading at 45.5 cents at 11:17 am AEDT.