- White Cliff Minerals (WCN) is set to acquire a new project through a binding agreement with Abraxis Mining
- The company will acquire Abraxis for $40,000 in cash, $80,000 worth of shares and a net smelter royalty of one per cent
- By doing so, White Cliff will acquire the Abraxis lithium project which is made up of three tenements considered prospective for lithium-bearing pegmatites
- White Cliff will interpret the pegmatites before conducting ground truthing and sampling
- WCN shares are trading 12 per cent higher at 2.8 cents
White Cliff Minerals (WCN) has entered a binding agreement to acquire Abraxis Mining which holds three tenements in WA’s Pilbara region.
The E45/6111, E45/6112 and E45/6133 tenements cover a combined area of 294 square kilometres and have been dubbed the “Abraxis Lithium Project”.
Geological mapping has indicated the Abraxis project is prospective for lithium-bearing pegmatites, however the area remains vastly underexplored. The project is 65km south of the Wodgina lithium mine and has good access.
“The acquisition of Abraxis, which holds three tenement applications considered highly prospective for lithium, expands the company’s Western Australian lithium and rare earth element project portfolio,” White Cliff Technical Director Ed Mead said.
White Cliff’s existing projects in WA include the Coronation Dam and Ghan Well nickel and cobalt projects in the north-eastern Goldfields region as well as the Reedy South and Midas gold and copper projects.
To acquire Abraxis Mining, White Cliff Minerals will pay $40,000 in cash and $80,000 worth of shares at 2.7 cents each, as well as a one per cent net smelter royalty.
White Cliff plans to begin interpreting the pegmatites within the Abraxis project and surrounding areas. Following the initial interpretation work, it will undertake a ground truthing and sampling exercise.
WCN was up 12 per cent trading at 2.8 cents at 12:03pm AEDT.