Galileo (ASX:GAL) strikes MinRes JV for Norseman lithium
June 3, 2024Galileo Mining has reached a farm-in and joint venture agreement with a fully owned Mineral Resources (ASX:MIN) subsidiary for the lithium rights over its Norseman platinum group and nickel project near the namesake town in Western Australia.
The companies will first form a joint venture lithium exploration split 70 to 30 in Galileo’s favour, and MinRes can then take its stake to 55 and 70 per cent through $15 million in exploration spending and a decision to mine.
Galileo will pocket an initial $5m, with another $2.5 due within a year while retaining rights to all minerals not contained within the project’s lithium-bearing pegmatites.
The junior partner already has a 17.5 million tonne platinum group and nickel resource to its name at Norseman, and Galileo Managing Director Brad Underwood said it was excited to add a lithium venture to the tenements.
“The Norseman project has excellent lithium potential and is strategically located in the world’s most prospective region for lithium,” Underwood said.
“The project’s outstanding location relative to existing infrastructure provides a short cut to development for any lithium resources discovered through the joint venture.”
Underwood added that with $7.5m soon due in the GAL accounts, it was now fully funded to undertake all its planned exploration.
“Galileo will benefit from a focussed program of lithium exploration by MinRes, one of Australia’s pre-eminent lithium companies, as well as increasing our cash reserves to aggressively pursue other high value resource discoveries at both our Norseman and Fraser Range projects.”
The Chris Ellison-helmed major has been busy striking deals with smaller-capped companies as it establishes a lithium-based fiefdom across the Goldfields.
Believing the Western Australian region is the most prospective place for lithium on earth, MinRes acquired Poseidon Nickel’s (ASX:POS) Lake Johnston nickel concentrator with a view to establishing its third lithium processing hub in the region.
Lord Resources (ASX:LRD) received a hefty share price bump after securing their own deal with MinRes, who also has eyes on Delta Lithium (ASX:DLI) – another company snapping up regional lithium assets with the board presence of Chris Ellison.
And for Galileo, the Perth-based company got another round of Norseman drilling underway in April and is looking to make more discoveries under its control while exploring alongside a major towards lithium mining on the same tenements.
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