Liontown takes next step in Olympio’s Mulwarrie lithium project

Liontown Resources (ASX: LTR) will complete a sampling program at Olympio Metals’ (ASX: OLY) Mulwarrie lithium project in the Eastern Goldfields of Western Australia before deciding whether to earn a 51% stake.

The miner, which was almost acquired by the world’s largest lithium producer Albemarle (NYSE: ALB) this year, has signed an earn-in deal on the early stage project that could see it earn up to a 90% interest over four years.

First, it plans to complete a sampling program within the next four months before deciding whether to invest A$400,000 (US$262,000) on exploration over the next year for a majority stake in the Mulwarrie and Mulline projects.

The company can then earn another 39% for up to 90% of the projects. It will have to spend $1 million on exploration over a three year period for the full interest.

“Olympio still retains significant exposure to any discovery success, as the company has the ability to contribute to funding and remain at 49% once the stage one farm-in is completed,” managing director Sean Delaney said in a statement.

The projects are located about 120 km northwest of Kalgoorlie. Olympio says Mulwarrie and Mulline are considered prospective for lithium-caesium-tantalum (LCT) pegmatite mineralization, with lithium mineralization identified in the region. 

Once Liontown secures a majority stake in the Mulwarrie and Mulline prospects, Olympio can elect to end the earn-in agreement and form a joint venture with Liontown. In that case, the companies said that Liontown would become the joint venture’s manager.