Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) has formed a strategic lithium partnership with the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) in regards to its Lefroy Lithium Project in the “lithium corridor” of the Eastern Goldfields in Western Australia.
The Korean government agency has agreed to fund US$3 million (A$4.8 million) of lithium exploration to earn 30% interest in a lithium joint venture across the Lefroy Lithium Project, which is about 20 kilometres south of Mineral Resources Ltd (ASX:MIN)’s Mt Marion lithium mine.
Maximus retains significant upside, holding a 70% interest in the lithium JV at the end of the farm-in period.
Maximus managing director Tim Wither said “We are very excited to commence working with KOMIR in advancing the company’s highly prospective Lefroy Lithium Project. This is a significant partnership for the company and is a strong endorsement of our lithium prospects with the backing from the Korean government agency KOMIR.”
“The strategic partnership allows Maximus to draw on KOMIR’s international expertise, and industry partnerships with the world's largest EV battery manufacturers, to support future project development, production, and marketing.
“Maximus is in a very strong position with a growing gold resource of 320,600 oz on granted mining tenements, several exciting nickel prospects and now secured funding and support to advance our lithium prospects, while retaining a significant discovery exposure in one of the dominant hard-rock lithium-producing regions in the world.”
South Korea is home to three of the world's five biggest electric vehicle (EV) battery manufacturers, which collectively control more than a quarter of the global EV battery market. The government agency, KOMIR, is responsible for the country’s national resource security, including developing overseas mining and processing capacity to supply the Korean market.
Maximus-KOMIR joint venture
Under the agreement KOMIR is to pay a non-refundable deposit of US$200,000 (A$320,000) to immediately advance the lithium exploration program at Lefroy, and it must fund a minimum of US$1 million (A$1.6 million) on lithium exploration in the first twelve months before choosing to withdraw from the agreement.
Maximus will be responsible for managing the exploration and development activities during the farm-in period, with support from KOMIR throughout the work program.
A non-binding MOU provides LG Energy Solution Ltd the opportunity to acquire KOMIR's 30% interest in the lithium joint venture. If it chooses to do so, LG Energy Solution Ltd will have the right to negotiate the purchase of up to 70% of the project’s future lithium product production.
Exploration underway
A lithium exploration program is now underway, with drill testing of priority targets awaiting final approvals.
The company has budgeted for ~3,500 soil geochemistry samples and around 3,000 metres of initial drilling over the next four months in the initial exploration program. It will then be reassessed ahead of subsequent exploration stages.
To assist in the geological understanding of the known pegmatite field at Lefroy, Maximus has submitted an application for the co-funding of a diamond drill hole via the Western Australian Government Exploration Incentive Scheme (EIS) and will know in late October whether the it was successful.
With the agreements locked in, the company has commenced a 200m x 50m tenement-wide soil geochemistry sampling program, aiming to identify additional areas of lithium-bearing pegmatites.
Targeted small scale reconnaissance soil geochemistry sampling has proved effective in identifying lithium-bearing pegmatites in blind or previously unknown areas due to the shallow cover in the region.
Once the joint venture arrangement has received Australian Foreign Investment Review Board (FIRB) approval, Maximus will expand the drill program to test several key lithium-bearing pegmatites, with the aid of the soil geochemistry sampling program.