Liontown takes next step in Olympio’s Mulwarrie lithium project

Liontown takes next step in Olympio’s Mulwarrie lithium projectLiontown’s main project is Kathleen Valley in Western Australia, set to start production in 2024. (Image courtesy of Liontown Resources.)

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.

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