Corazon Mining Ltd (ASX:CZN, OTC:CRZNF) has completed the divestment of 85% of the lithium rights and industrial mineral rights for the Miriam Project in Western Australia to lithium-focused explorer and developer Future Battery Minerals Ltd.
The company is now free-carried on the lithium exploration and development costs until a definitive feasibility study (DFS) is completed. It also retains 100% of the project’s base and precious metals rights.
Miriam Project is north of FBM’s Kangaroo Hills Lithium Project, near the town of Coolgardie within the Eastern Goldfields of Western Australia.
Corazon’s Miriam Project and Future Battery Minerals’ Kangaroo Hills Lithium Project.
The acquisition represents a logical move by FBM to consolidate tenure prospective for lithium-bearing pegmatites within the region.
Miriam Project offers a highly prospective, drill-ready opportunity following Corazon’s identification of outcropping spodumene lithium-bearing pegmatites within a large geochemical soil anomaly.
Corazon will use the funds received from this sale and funds previously allocated to drilling at the Miriam lithium anomaly to advance activities at the Lynn Lake Nickel Sulphide Project in Canada and the Mt Gilmore Copper-Gold-Cobalt Project in New South Wales.
This transaction delivers initial cash and FBM shares to Corazon, with performance rights allowing the company to participate in any future upside from FBM’s exploration or development success at Miriam.
The total consideration for the divestment is:
- $1 million in cash has been paid (A$250,000 as a deposit and A$750,000 in cash at completion);
- 16,129,033 fully paid ordinary shares in FBM have been provided; and
- An additional 120,967,744 performance rights are payable on completion of vesting conditions including a drill hole intercept of at least 15 metres at greater than 1% lithium oxide, definition of a mineral resource estimate at 10 million tonnes at 1% lithium oxide and then a 20 million tonnes resource.
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