- Red Mountain Mining (RMX) is acquiring the Lithic and Mustang lithium projects in Nevada, US
- The company will buy the projects from Lithic Lithium for US$150,000 in cash, 179.5 million shares, up to 205.1 million performance rights, and a two per cent net smelter royalty
- The lithium projects lie ear infrastructure and potential offtake partners, and the Lithic project is just 29 kilometres from the only lithium-producing mine in the US
- Red Mountain is raising $1.8 million through a placement to fund planned exploration work at the new projects
- RMX shares are trading 20 per cent higher at 0.6 cents at 2:59 pm AEDT
Red Mountain Mining (RMX) is set to acquire two new lithium projects in Nevada, US.
The company has signed a purchase agreement with Chariot Corporation’s US subsidiary, Lithic Lithium (LLL), to acquire the Lithic and Mustang lithium projects.
These projects consist of 153 claims within a combined area of 1178 hectares prospective for claystone-hosted lithium in Nevada, which is regarded as the dominant claystone-hosted lithium region in the US.
They’re also both in proximity to other lithium deposits, and the Lithic project lies just 29 kilometres north of Silver Peak — the only lithium-producing mine currently operating in the US.
The Lithic and Mustang projects also lie near infrastructure, mining services, power, and potential offtake partners, which helps position them to benefit from domestic supply development initiatives.
“RMX view this very significant transaction as an excellent opportunity for the company, as it increases our lithium exposure in Nevada, US,” Red Mountain Mining Chair Troy Flannery said.
The company previously paid LLL an option fee of US$35,000 (A$52,000) for an exclusive 45-day option period.
Separately, RMX will pay US$150,000 in cash, roughly 179.5 million shares, up to 205.1 million performance rights, and a two per cent net smelter royalty to LLL.
Red Mountain has already laid out exploration plans for each project, with initial work at Lithic to include sampling, mapping and reconnaissance work. The company will also conduct a line of shallow trenches over 2000 metres to help identify future drill targets.
At the Mustang project, the company will undertake mapping and surface sampling to support a reverse circulation drilling program.
In order to fund these exploration plans, the company is raising $1.8 million through a two-tranche share placement of 450 million shares at 0.4 cents per share.
RMX shares were trading 20 per cent higher at 0.6 cents at 2:59 pm AEDT.