Former Tasmania gold miner Bass Metals Limited (ASX: BSM) has completed a transaction for the acquisition of a sizeable Lithium opportunity in Madagascar.
The Millie’s Reward Project includes two permits and a Mineral Rights Agreement for a third permit.
Base Metals CEO, Tim McManus, says the Project is highly prospective for high-grade, shallow, lithium-in-spodumene mineralisation.
“The acquisition of Millie’s Reward is consistent with Bass’ strategy to leverage its in- country producer status in Madagascar to appraise further opportunities in this highly prospective and stable jurisdiction,” Mr McManus said.
The team at Bass Metals is pleased to have finalised this transaction and plan to commencing Phase 1 exploration immediately, having already received Board approval. The team is truly excited to have the opportunity to explore such a remarkable virgin discovery.
“The Project, a group of Permits with granted exploration rights, complements Bass’ presence in Madagascar and its aim to become a leading producer and supplier of industrial minerals concentrates.
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The Transaction terms or the acquisition are:
- $US100,000 in cash and $US50,000 in shares on the acquisition of the mining permits and completion of the transaction;
- $US100,000 in cash and $US50,000 worth of shares upon establishing a JORC compliant resource of >5 million tonnes at >1.5% Li2O;
- $US100,000 in cash and $US50,000 worth of shares upon the tabling of a feasibility study for Millie’s Reward;
- $US100,000 in cash and $US50,000 worth of shares upon first sales of either Direct Shipping Ore (DSO) or Chemical Grade (>6% Li2O) lithium concentrates;
- Bass will pay to the Vendor a 0.25% concentrate sales royalty on any future lithium concentrate or DSO sales from Millie’s Reward for a period of 12 years from first concentrate or DSO sales, up to US$US2m.
In addition to the Project acquisition terms, the Projects vendors have agreed to provide technical and advisory services to Bass in order to fast track the proposed exploration program.
The Millie’s Reward area hosts numerous pegmatitic dikes, veins, pods, and sills, with the highest geochemically evolved pegmatites hosted in dolomitic marbles and along the contact between marbles and schist.
Most of the pegmatites mined for gemstones, and most of the ones in which gemstones do not occur, contain variable quantities of Li-ore (spodumene), from a few points in percentage, up to 30% to 50% in volume of the rock.