Astro Resources NL (ASX:ARO) has updated the market on operations at the recently acquired Georgia Basin Iron Oxide Copper Gold (IOCG) Project and its joint venture lithium project.
Georgia Basin finalised
Astro completed the 80% acquisition of the Georgia Basin Project after receiving shareholder approval at its AGM in mid-November.
The company acquired 80% of Knox Resources Pty Ltd from Greenvale Energy Ltd. Knox is the 100% owner of the Georgina Basin IOCG project in the Northern Territory, Australia.
ARO has today issued 46 million ordinary shares to Greenvale Energy Ltd.
Joint venture lithium portfolio
ARO’s joint venture with unlisted Canadian public company Luna Lithium Limited is also progressing well.
The Australian company entered a non-binding letter of intent with Luna in September. The purpose of the JV was to incorporate a joint venture entity called Galactic Lithium, LLC, which would source, identify and explore lithium brine and lithium clay assets across the US.
Under the terms of the LoI:
- Luna was to contribute its 100% interest in the Columbus Basin Project (which was subject to a separate transaction). The Columbus Basin Project is a lithium brine project located in Nevada, USA.
- ATO was to contribute its 100% interest in the Kibby Basin Project - a lithium clay project in the Kibby Basin, Nevada.
- Each party would be responsible for the funding of their respective projects contributed to Galactic.
- The board of Galactic would comprise two persons from Astro and one from Luna.
- Each party is to contribute cash funding for exploration work of US$500,000 in the first year, with a further US$700,000 in the second year.
Spin-off project
ARO continues to work on the proposed spin-off of its East Kimberley Diamond Project, which will form part of a collection of other diamond assets to be acquired.
The company’s wholly-owned subsidiary Argyle Resources Limited is expected to be the spin-off vehicle that will acquire these types of projects, with a view to listing on the ASX when ready.
During the December 2022 quarter, ARO was notified by one of the Argyle vendor parties that they were not prepared to incur their project’s minimum expenditure costs, as required under the relevant mining legislation.
ARO is assessing whether it will proceed with the inclusion of this project within the Argyle portfolio. ARO is also reviewing its strategy - including the quantum of capital raising, to ensure that Argyle and the East Kimberly Diamond Project are sufficiently funded.
The proposed listing of Argyle remains subject to shareholder approval, satisfying ASX admission requirements and the successful completion of a public fundraising to meet the requirements of the ASX Listing Rules.