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Trek Metals (ASX:TKM) strikes option deal over NT Princess project

ASX News, Mining
ASX:TKM      MCAP $21.56M
22 December 2022 12:48 (AEST)

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Trek Metals (TKM) has secured an option agreement with private company Gempart over the Princess project in the Northern Territory to further expand its Australian battery metals portfolio.

Under the agreement, Trek has been granted an exclusive 90-day due diligence period to undertake field exploration activities to evaluate the lithium potential of the pegmatites at the project.

Upon completion of due diligence, Trek will be granted an option to acquire an 80 per cent interest in two tenements, Pannikin and White Lady.

The exercise of this option will be dependent on Trek incurring a minimum of $100,000 in exploration and evaluation expenditure and all necessary regulatory approvals.

If exercised, Trek will be transferred an 80 per cent interest in the tenements, with Gempart free carried for its 20 per cent until the completion of a definitive feasibility study.

Trek CEO Derek Marshall said the agreement with Gempart provided a low-cost opportunity to assess the lithium potential of a large swarm of pegmatites in a top-tier location.

The project lies in the Harts Ranges district of the Northern Territory, approximately 100 kilometres northeast of Alice Springs.

These deposits were exploited for mica sometime in the late 1880s to the 1960s, but there has been no modern exploration information on the pegmatites.

Shares in Trek Metals were down 1.37 per cent to 7.2 cents at 12:36 pm AEDT.

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