Altura Mining is set to significantly expand its existing tenement holding in the Pilbara, Western Australia through investing in the exploration portfolio of emerging lithium miner Sayona Mining.
Both companies have struck an earn-in agreement, where Altura could earn a 51 per cent interest over Sayona’s portfolio in Pilgangoora by spending $1.5 million on exploration across the project portfolio over a three year period.
The tenement package consists of around 1806 square kilometres, with proximity to Altura’s existing mining and processing infrastructure.
Altura is confident the strategic location will significantly enhance the development potential of any discoveries.
“The addition of the Sayona tenement package provides upside potential for both companies,” Altura managing director James Brown said.
“Altura has an existing extensive exploration portfolio as well as its flagship lithium operation, which is currently reaching near nameplate production after its first full quarter of commercial production.”
Both Altura and Sayona share three executive leaders in their management team. In addition to Brown, two of Sayona’s non-executive directors are directors of Altura.
Sayona managing director Brett Lynch said Altura was the perfect partner to crystallise value for shareholders from the company’s Australian lithium assets.
“Altura has a highly experienced in-house team that successfully led the financing, construction and commissioning of its spodumene mine at Pilgangoora,” he said.
Sayona will retain the remaining project interest and the right to contribute to project evaluation and future development to participate in the upside potential.
Altura plans to advance exploration activity “as quickly as possible,” providing a pathway through to production opportunities and allowing Sayona to focus on its Canadian lithium development projects.
“Our common directors and shared experiences have given us a mutual understanding that will allow the potential of Sayona’s Australian exploration tenements to be fully explored,” Brown concluded.