Accelerate Resources Ltd (ASX:AX8) has opted to strengthen its battery metal strategy in the western Pilbara with the acquisition of what it calls a “transformational” asset, the Karratha Lithium Projects.
The move will allow AX8 to stake out land in the emerging Roebourne-Karratha lithium belt which includes Azure Minerals Ltd (ASX:AZS, OTC:AZRMF)’s exciting Andover lithium discovery.
The company is particularly interested in the Prinsep Project, where due diligence investigations have revealed two parallel spodumene-rich, outcropping pegmatite systems, which have generated rock chip samples of up to 1.87% lithium and represent a series of “walk-up” drill targets.
Placement to fund acquisition
AX8’s recent capital raise in the form of an oversubscribed, $3.6 million placement will help fund the acquisition, while also demonstrating the market’s strong support for the company’s battery metal strategy – one of the key investors in the placement was Mark Thompson, founder and managing director of successful battery minerals group, Talga Group Ltd.
Accelerate has entered into binding agreements to acquire the projects, which include:
- Prinsep Lithium Project (100%);
- Mt Sholl Project (100%);
- Mt Sholl East Project (75%); and
- Roebourne South Project (75%)
Together they represent some 90 square kilometres of lithium-prospective ground, with Prinsep being the most advanced project.
From here, the company intends to complete a detailed drone photogrammetric survey to create a map of the Prinsep and Mt Sholl East Project areas.
The mapping will aid in selecting targets for follow-up rock chip sampling, which will be followed by drilling campaigns once AX8 gains DMIRS Program of Works approval and any heritage clearance approvals.