Global Lithium Resources Ltd (ASX:GL1) is expanding its regional interests after entering a collaboration agreement and making a strategic investment of up to A$4.6 million in Kairos Minerals Ltd (ASX:KAI, OTCQB:KAIFF) and entering into an option agreement with Baracus Pty Ltd.
Investing in Kairos Minerals will allow Global Lithium to expand its interests in the overall project area of influence as Kairos holds exploration licences for the Roe Hills Lithium Project, which is immediately south and adjacent to GL1's Manna Lithium Project.
Expanded influence in region
By expanding its regional interests through collaborations and investments Global Lithium Resources Limited aims to bolster its presence in the Manna Lithium Project area and capitalise on the significant potential for lithium resources in the surrounding region.
These moves align with the company's commitment to advancing its multi-asset West Australian lithium portfolio and maximising the value of its exploration and development activities.
The strategic investment will mean Global Lithium holds a 10% strategic shareholding in Kairos, amounting to a capital raise of up to A$4.615 million.
Funds will be used by Kairos to explore and develop the Roe Hills Lithium Project, with recognised targets and potential for spodumene-bearing pegmatites in proximity to the Manna Lithium Project.
Global Lithium and Kairos Minerals have also executed a collaboration deed granting various rights to both parties, including:
- the establishment of a joint technical committee to assess progress at the Roe Hills Lithium Project;
- a first right of refusal for up to five years if Kairos intends to sell, divest, farm-out, or enter into a joint venture arrangement for any or all of its tenements in the Roe Hills Lithium Project; and
- collaboration on infrastructure, water access and heritage surveys.
Additionally, Kairos will have access to Manna Lithium Project infrastructure on a cost-plus basis.
The Roe Hills Lithium Project consists of 18 tenements adding up to some 241 square kilometres that form contiguous licences adjacent to the Manna Lithium Project.
Promising lithium anomalies have been identified through soil geochemical analysis and low-impact soil and auger sampling, indicating the potential for significant lithium resources in the area.
Option agreement
Global Lithium has also secured an option agreement with Baracus Pty Ltd for E28/3197, an exploration tenement immediately east of the Manna Lithium Project. In exchange for A$250,000, Global Lithium has obtained a two-year exclusive option to conduct exploration activities on the tenement.
The company also holds the option to acquire a 100% interest in the tenement, excluding precious metal rights reserved by Baracus, for the fee of an additional A$750,000 before the end of the two-year option period.