By London-based company Mila Resources saw a surge in its shares after announcing a new option agreement with Australian lithium developer Liontown Resources. This agreement grants Mila Resources the option to explore for lithium at the Kathleen Valley project in Western Australia.
Increased Participating Interest
As part of this agreement, Mila Resources has increased its participating interest in the project license from 30% to 80%. Additionally, the company’s lithium rights have increased from 50% to 80%, representing 16% of the lithium rights following Liontown’s full exercise of its option. These amendments to the earn-in deal have been made in agreement with the license owners, Trans Pacific Energy Group and New Generation Minerals.
Liontown’s Acquisition Option
Under the terms of the agreement, Liontown has the option to purchase up to 80% of the lithium rights from Mila Resources and Trans Pacific Energy for a total consideration of up to AUD 2.2 million ($1.5 million).
Expected Production Timeline
Liontown has set a target to bring the Kathleen Valley lithium project into production by mid-2024.
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