Maximus Resources (ASX:MXR) execute on international interest
October 16, 2023Maximus Resources has executed a strategic partnership with a Korean Government agency to fund $4.8 million of exploration at its Lefroy Lithium Project in Western Australia’s Eastern Goldfields.
The pact with Korea Mine Rehabilitation and Mineral Resources Corporation will have Maximus retaining a significant 70 per cent upside at the end of the farm in period and shows major international interest in the asset lying just 20 kilometres from Mt Marion in the region’s eminent lithium corridor.
Maximus Managing Director Tim Wither said the company was very excited to be working with its new partner to advance the highly prospective 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,” Mr Wither said.
“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.”
The company’s new partner will pay a non-refundable $320,000 deposit to immediately advance exploration, already underway with a sampling campaign as Maximus await final approvals for drill testing of priority targets.
Initial exploration has been budgeted for 3500 soil geochemistry samples and 3000 metres of drilling over the next four months before planning the next stage of exploration.
South Korea is home to three of five of the world’s largest biggest electric vehicle battery manufacturers which have been busy snapping up lithium assets to avoid the prospect of a raw materials bottleneck in production.
The major producers have stuck fast on lofty evaluations looking ahead to a rebound in prices, which have in turn put a focus on exploration assets as a cheaper way to acquire raw lithium.
And there is a separate, non-binding MOU that provides global manufacturer LG Energy with an option to snap up KOMIR’s interest in the joint venture.
The deal remains subject to approval from the Australian Foreign Investment Review Board, but once cleared, the joint venture will expand is drill program to test several key lithium-bearing pegmatites and provide the first proper look into Lefroy Lithium.
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