Global lithium major SQM has moved on more lithium assets in Western Australia after striking a $10 million deal to acquire a stake in Novo Resources’ Pilbara tenements.
Chilean lithium major SQM has moved on more lithium assets in Western Australia after striking a $10 million deal to acquire a stake in Novo Resources’ Pilbara tenements.
Novo told the market this morning that SQM Australia- who has today partnered with Gina Rinehart's Hancock Prospecting to lob a new $1.7 billion bid for Azure Minerals- has agreed to pay $10 million for a 75 per cent interest in five of Novo's prospective lithium-nickel tenements in the West Pilbara.
The tenements neighbour the Andover lithium project in the Pilbara which is 60 per cent owned by Azure Minerals and 40 per cent held by mining executive Mark Creasy, who has thrown his support behind the Azure takeover.
Novo and SQM have also formed a joint venture, dubbed the Harding Battery Metals joint venture, under which SQM could snap up additional tenements over the next 12 months.
Under the JV, Novo will retain the rights to gold, silver, PGE, copper, lead and zinc minerals.
SQM's deal with Novo, and its takeover bid with Hancock, could see the global lithium producer secure a major foothold in access to battery mineral assets in the Pilbara.
Novo executive co-chairman and acting chief executive Mike Spreadborough said participating in a JV with a global lithium leader like SQM was an excellent outcome for Novo.
He said it would see the company receive an immediate payment of $10 million that would further boost cash reserves for their primary gold exploration focus.
“Meanwhile, SQM can focus on the battery metals prospectivity of the West Pilbara area and our shareholders can benefit from future exploration success with a free-carried interest until a decision to mine,” Mr Spreadborough said.
“SQM has been very active in the Western Australian lithium sector with an about 19 per cent shareholding in Azure Minerals, and a 50 per cent JV with Wesfarmers in Mt. Holland, that among other investments demonstrates that SQM clearly sees the potential of Western Australia for battery metals, as do we for gold.
“This joint venture expands Novo’s lithium exploration exposure given the existing lithium Quartz Hill JV with Liatam Mining.”
Earlier this year, De Grey Mining bought an 11.6 per cent foothold in Novo under a deal that provisioned for the goldminer to aquire a 50 per cent stake in Novo's Egina exploration project, south of De Grey's Mallinda gold asset.
SQM has been contacted for comment.
