Australian lithium developer Core Lithium Ltd. (CXO), Adelaide, South Australia, has sent the final $1.5 million payment to Liontown Resources (LTR), Perth, Australia, for the Bynoe Lithium Project, The Herald Market reports.
The purchase’s value contributed significantly to Core’s recently announced mineral resource estimate of 15 million tonnes at 1.3 per cent of lithium oxide, as well as ore reserves, which support a seven-year life of mine.
The mineral resources defined by Core include resources found at the BP33, Carlton, Hang Gong, Booths, Lees and Sandras assets.
Additionally, the purchase will provide Core with access to the Greeenbushes large process water dam. This is key to the company’s plans to develop and potentially expand production at its flagship Finniss Lithium Project.
As part of the purchase agreement, Core was required to pay to Liontown $1.5 million (in cash or shares, at Core’s election) within 30 days of Core declaring a mineral resource estimate of 5 million tonnes (inferred, indicated or measured) in relation to the tenements sold under the agreement.
The contingent consideration milestone was met by Core with the recent announcement in June that the Finniss Lithium Resource had increased by over 50%.
Core will pay Liontown the $1.5 million in cash before July 14 from its cash reserves of $8.5 million.