Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Australasian Metals Limited (A8G) signs an agreement with Prodigy Gold NL (PRX) to acquire a 90 per cent interest in the Burrow Creek lithium project
  • The agreement includes five tenements covering approximately 880 square kilometres in the Arunta pegmatite province, Northern Territory
  • Australasian will pay $150,000 cash for part ownership of the joint venture with Prodigy Gold’s 10 per cent interest to be free carried until completion of a pre-feasibility study with an NPV exceeding $100 million
  • After completing the study, Prodigy Gold will have the ability to elect to convert its interest into a one per cent net smelter royalty, or pro-rata fund its interest in the project
  • Australasian Metals shares bounced 14.3 per cent to 68 cents, while Prodigy Gold shares slipped to 3.3 cents

Australasian Metals Limited (A8G) signs an agreement with Prodigy Gold NL (PRX) to acquire a 90 per cent interest in the Burrow Creek lithium project.

The agreement includes five tenements covering approximately 880 square kilometres in the Arunta pegmatite province, Northern Territory.

Australasian will pay $150,000 cash for part ownership of the joint venture.

Prodigy Gold’s 10 per cent interest will be free carried until completion of a pre-feasibility study with an NPV exceeding $100 million.

After completing the study, Prodigy Gold will have the ability to elect to convert its interest into a one per cent net smelter royalty, or pro-rata fund its interest in the project.

The location of the tenements is roughly 100 kilometres northeast of the company’s Mt Peake Lithium project.

The tenements are situated on privately-owned land, with good road and railway access.

There are historical tin-tantalum occurrences recorded across several tenements.

Access to most of the project area is through the Stuart Highway to the north and then using the Ali Curung to Jarra Jarra track.

Reliable fair-weather access to most of the individual sites is via a series of established pastoral and historical exploration gravel tracks

Australasian Metals shares were in the green by 12 per cent to 67 cents at 1145 AEDT, while Prodigy Gold shares were down 3 per cent at 3.3 cents.

A8G by the numbers
More From The Market Herald
Ampol (ASX:ALD) - Managing Director & CEO, Matthew Halliday

" Ampol (ASX:ALD) gets all clear for Z Energy (ASX:ZEL) acquisition

Ampol Limited (ASX:ALD) welcomes the decision by the NZCC to provide clearance for its acquisition of…
Ampol Limited,APL - Managing Director and CEO Matthew Halliday

" Ampol (ASX:ALD) sells 20 retail sites for $48m in net proceeds

Ampol Limited (APL) announces the sale of 20 care freehold convenience retail sites to Charter Hall…

" Zenith Minerals (ASX:ZNC) begins drilling at Waratah Well

Zenith Minerals (ASX:ZNC) has begun drilling at the Waratah Well lithium project in Western Australia.
Resource Base (ASX:RBX) - Executive Chairman & CEO, Shannon Green

" Resource Base (ASX:RBX) makes significant REE discovery at Mitre Hill

Resource Base (ASX:RBX) has made a significant rare earth element (REE) discovery at its Mitre Hill…