LONDON, UK: Mila Resources Plc, a gold exploration company, has entered into an option agreement with Liontown Resources Limited, a lithium developer, to explore for lithium on its Kathleen Valley licence in Western Australia.
Liontown, which has a market value of about A$6.0 billion and plans to start producing lithium from its nearby project in 2024, will fund all the exploration, mining and heritage costs for the lithium rights.
Mila and its partners, Trans Pacific Energy Group and New Generation Minerals, will retain the ownership of the gold and other minerals on the licence.
Liontown can acquire up to 80% of the lithium rights from Mila and Trans Pacific for up to A$2.2 million in stages.
Mila currently has a 50% interest in the lithium rights, which will reduce to 10% if Liontown exercises its option fully.
Mila said the deal will benefit from Liontown’s expertise and experience in lithium exploration and development in the Kathleen Valley area and will also enable it to access drill and assay data and heritage surveys for its own gold exploration activities.