Maximus (ASX:MXR) FIRB approval for KOMIR lithium JV gives Lefroy ‘wings’

Maximus Resources Limited (ASX:MXR) has secured Australian Government approval from the Foreign Investment Review Board for its lithium joint venture with Korean Government critical minerals corporation KOMIR.

The Treasury stamp of approval is a major milestone for Australian company Maximus’ agreement with the Korea Mine Rehabilitation and Mineral Resources Corporation.

FIRB’s tick-off will allow the Western Australian and South Australian-based business to access the full US$3 million Lefroy Lithium Project budget, giving full backing to JV manager Maximus’ local exploration efforts in WA’s Eastern Goldfields lithium corridor.

Korean Government mining agency KOMIR can earn a stake of up to 30% in Lefroy by spending the sum, with its initial deposit helping to fund maiden discoveries of high-grade spodumene-bearing pegmatites of up to 6 metres at 1.11% Li2O during the FIRB approval process period.

Among these was 3m @ 1.99% Li2O intersected during Maximus’ maiden drill program near Kali Metals’ (ASX:KM1) Spargoville project and two Mineral Resources (ASX:MIN) lithium mines.

Lefroy rests between MinRes’ Bald Hill and Mt Marion mines, both marked as feed for a third MinRes processing hub in the Goldfields.

Maximus Managing Director Tim Wither told MarketOpen the Australian Foreign Investment Review Board approval milestone would allow the company to progress its lithium exploration efforts and give the Lefroy program wings.

“The funding KOMIR is doing gives it the rights to 30 per cent of the project and we get access to the remainder of that $3 million cash,” he said.

Wither confirmed the deal allowed KOMIR to press for more than 70 per cent of the project.

“Behind KOMIR sits LG Energy solutions, it has the rights to acquire KOMIR’s 30 percent, so we really don’t have any problems funding future exploration if we make any future discoveries,” he said.

“We retain significant upside following resource discovery because we retain 70 per cent ownership.”

Wither told the market the FIRB approval was an important milestone for what he described as strategic lithium partnership with KOMIR, enabling the company to progress its lead lithium project.

“We have made some significant progress during the FIRB review process, utilising a US$200,000 non-refundable deposit to build our geological understanding and identifying some very promising prospective targets at Kandui, Yilmia and Landor through the first-phase soil geochemistry mapping and a successful initial 3,000-metre RC drill program,” he said in a statement.

Wither said the company’s upcoming second-phase follow-up drill program would focus on spod-bearing pegmatites with high grades at its Kandui prospect, while also drill testing its Yilmia and Landor prospects.

Global battery manufacturer LG Energy Solution has an option to snap up KOMIR’s interest in Lefroy, and the right to negotiate to buy up to 70% of future lithium product.

While Maximus tends to be valued through its gold resources, the KOMIR deal is a significant bonus for the $10 million market cap company, with any future lithium resource definitions likely to be factored into future valuations.

Maximus is focused on the Eastern Goldfields, holding 335,000 ounces of gold resources at its granted mining tenements there and a 75%-owned stake in its Larkinville Lithium Project, which sits outside its deal with KOMIR.

The company is currently rattling the tin with a $3.2 million underwritten entitlement offer and will use funds it raises to progress its Larkinville exploration effort going forward, also backed by a $120,00 WA Government Exploration Incentive Scheme drilling grant.

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