GreenTech and Artemis forge blockbuster Pilbara | Australian Markets

GreenTech Metals has joined forces with Artemis Resources to create a monster 420-square-kilometre lithium exploration play within the extremely potential West Pilbara area of Western Australia.

The firms will merge their lithium exploration property into a single newly shaped three way partnership, Andover Lithium, which can create the most important lithium exploration tenement packages within the space.

The transfer ought to improve the new three way partnership’s possibilities of bringing in a main funding companion interested in the landholding’s scale.

Each company will maintain an equal 50 per cent stake within the partnership.

The enlarged tenement space lies alongside the extremely mineralised Karratha-Roebourne lithium hall. The area has garnered important consideration lately due to the discovery of Azure Minerals’ eye-popping Tier 1 Andover lithium deposit, which hosts a large high grade exploration goal of up to 240 million tonnes grading 1.5 per cent lithium oxide.

Andover Lithium’s grounds embrace six key areas recognized for his or her lithium potential. Four areas are identified to include important outcrops of spodumene-bearing pegmatite, which is an indicator of high-grade lithium mineralisation.

GreenTech says the consolidation of its lithium property has freed up precious time and sources permitting the company to deal with its flagship Whundo copper and zinc volcanogenic large sulphide project. Likewise, Artemis can push on with exploration at its Carlow gold project.

The choice to type Andover Lithium appears a savvy transfer by the companions. By streamlining exploration prices tied to their lithium tenements during the present downturn in metallic costs, the duo can protect capital whereas remaining strategically positioned.

When the worldwide demand cycle returns – which some pundits see as inevitable – the three way partnership will probably be completely positioned to maximise a return, pushed by an accelerating international push in direction of the inexperienced power transition.

The merger deal additionally comes sizzling on the heels of GreenTech’s choice final week to promote some non-core tenements to ASX-listed explorer Errawarra Resources for $100,000 and a $2M efficiency price based mostly on a future choice to mine.

GreenTech is rationalising a busy exploration schedule to pay attention exploration efforts at its close by Whundo copper project, which already hosts a 6.5MT useful resource grading 1.12 per cent copper. A diamond drill program lately jagged a 10-metre and 7.23m sections of large sulphides.

Visual inspection of the core suggests the pattern may include as a lot as 30 per cent chalcopyrite ore, which is often known as copper sulphide.

GreenTech says the outcomes affirm the down-plunge extension of the mineralised lodes at Whundo, smashing backroom chat that its useful resource was already capped.

With assays pending and a down gap electromagnetic survey imminent, the company will probably be eager to crunch the numbers in efforts to ultimately show the doomsayers mistaken and ship a useful resource improve on the project.

The merger deal additionally comes at an attention-grabbing time within the lithium market cycle. Housing a large 420 sq. kilometres of extremely potential lithium leases in a single-commodity vehicle forward of the subsequent cycle run provides the companions a lot of optionality.

Either the landholding turns into attractive enough for a lithium main to return knocking, or when the market recovers the three way partnership could possibly be spun out into a separate high-octane lithium itemizing. At the very least the 2 firms can stay properly positioned for upside alternatives.

As the outdated saying goes: There’s at all times security in numbers.

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