Zenith Minerals has sold its Mt Alexander magnetite iron project in Western Australia to Mount Alexander Iron Ore (MAIO) for $2.75 million.
The company will receive an up-front cash payment of $250,000, as well as 10 annual payments of $250,000 each once the project has reached commercial production.
Funds received from the divestment of Mt Alexander will be used as working capital and applied towards advancing Zenith’s project portfolio.
The company is focusing on its exploration activities at its 100 per cent owned split rocks lithium project in Western Australia.
Zenith has commenced systematic screening of its large project landholdings of 500 square kilometres at split rocks, which is located within the prospective Forrestania greenstone belt.
This emerging lithium district is host to SQM and Kidman Resources Mt Holland/Earl Grey lithium deposit, with Kidman the subject of a recent off-market takeover by Wesfarmers.
The proposed drill programs to be undertaken at split rocks will test both pegmatite bodies identified in past drilling, surface lithium anomalies generated through the company’s work programs as well as bedrock gold targets.