- Oar Resources (OAR) will acquire an undisclosed lithium project targeting pegmatite hosted lithium mineralisation near Wiluna in Western Australia
- The acquisition will have Oar issue 240 million fully paid shares to the sellers which includes a non-refundable deposit of 40 million shares
- The sellers will also be guaranteed an aggregate two per cent net smelter royalty in respect of all lithium oxide extracted by Oar from the project
- Executive Chairman Chris Gale says the project will add to Oar’s strategy of developing into a battery metals-focused company
- Shares in Oar end the day in the grey to close at 0.5 cents
Oar Resources (OAR) has signed a binding option term sheet to acquire a lithium project targeting pegmatite hosted lithium mineralisation near Wiluna in Western Australia.
The acquisition will have Oar issue 240 million fully paid shares to the sellers which includes 40 million shares to be paid within five business days after the execution date as a non-refundable deposit and 200 million shares to be paid upon completion.
The sellers will also be guaranteed an aggregate two per cent net smelter royalty in respect of all lithium oxide extracted by Oar from the project.
The project is targeting pegmatite-hosted lithium mineralisation with initial indications pointing to the existence of lithium-caesium-tantalum (LCT) pegmatites.
This is believed to be the same host rock found at several key lithium projects, including Pilbara Minerals’ (PLS) Pilgangoora project.
Further, recently completed reconnaissance confirmed the presence of pegmatites at the location of historic rock chip samples that were taken in 2019 by Denchi.
A total of 16 samples were collected by the company’s geological team at the site of the historic samples and at numerous outcropping pegmatite dykes up to 500 metres from the initial anomalism.
Executive Chairman Chris Gale said the project will add to Oar’s strategy of developing into a battery metals-focused company.
“The Denchi Project is in proximity to large, established lithium projects,” he said.
“We see this project as a valuable addition to our stable of critical mineral assets that are in demand globally as the race for renewables continues to accelerate.”
Further reconnaissance mapping across the project tenements has been planned in the immediate steps to help guide a systematic project-wide mapping and rock chip sampling program.
Shares in Oar ended the day in the grey to close at 0.5 cents.