- Ragusa Minerals (RAS) enters a farm-in agreement with May Drilling to earn a 90 per cent interest in five tenements in the Litchfield Pegmatite Belt in the Northern Territory
- The tenements are prospective for lithium, though historical exploration related mainly to pegmatites for tin and tantalum
- Under the agreement, Ragusa will be able to conduct due diligence work in the area, which includes exploration activities on the tenements
- Once the farm-in period is complete, the parties will enter a joint venture and Ragusa will own 90 per cent of the tenements
- Ragusa shares are trading 23.8 per cent higher today at 9.9 cents each at 1:34 pm AEST
Ragusa Minerals (RAS) has entered a farm-in agreement with May Drilling to earn a 90 per cent interest in five tenements in the Litchfield Pegmatite Belt in the Northern Territory.
The tenements are prospective for lithium, though historical exploration mostly related to pegmatites for tin and tantalum.
Under the agreement, Ragusa will be able to conduct due diligence work in the area, which includes exploration activities on the tenements.
The company is planning to target outcropping pegmatite rocks identified in historical exploration.
In order to conduct due diligence over a 12-month period, RAS will pay $125,000 in cash to May Drilling.
If the company chooses to proceed with the agreement, additional payments will be required, with a minimum spend of at least $2.5 million on the project.
Once the farm-in period is complete, the parties will enter a joint venture under which Ragusa will own 90 per cent of the tenements. Ragusa will then have the option to acquire the final 10 per cent interest in the tenements.
Chairman Jerko Zuvela said this presented a “significant opportunity” for Ragusa in the heart of a well-renowned lithium district.
“With four currently granted tenements and considerable historic works to reference, Ragusa is in a strong position to rapidly accelerate the development of our project at a time of record lithium prices and within a proven high-quality lithium district,” Mr Zuvela said.
Ragusa shares were trading 23.8 per cent higher today at 9.9 cents each at 1:34 pm AEST.