Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Liontown Resources (ASX: LTR) is proceeding with stage one of a two-stage farm-in agreement with Olympio Metals (ASX: OLY) concerning the Mulwarrie lithium project in the Eastern Goldfields of Western Australia.
The move by the miner, which was almost acquired by the world’s largest lithium producer Albemarle (NYSE: ALB) this year, allows it to earn up to a 51% interest in the Mulwarrie and Mulline projects. First, Liontown will have to spend A$400,000 ($262,000) on exploration over a period of 12 months or can choose to withdraw from the joint venture completely.
“Olympio still retains significant exposure to any discovery success, as the company has the ability to contribute to funding and remain at 49% once the stage one farm-in is completed,” managing director Sean Delaney said in the statement.
Olympio said the Mulwarrie and Mulline prospects are considered prospective for lithium-caesium-tantalum pegmatite mineralization, with lithium mineralization identified in the region.
Once Liontown secures a majority stake in the Mulwarrie and Mulline prospects, following the completion of the stage one, Olympio can elect to end the farm-in agreement and form a joint venture with Liontown. In that case, the companies said that Liontown would become the joint venture’s manager.
