Dudley can be acquired through a two-stage farm-in involving cash and share payments and expenditures, earning 51 percent in Stage 1 and an additional 39 percent in Stage 2, respectively.
“We are pleased to have been able to secure a highly prospective lithium exploration project in South Australia, one of the best mining jurisdictions in the world. Kangaroo Island is a large land mass with a history of mining and a government supportive of exploration and development of mineral resources,” Trinex Managing Director Will Dix said.
The company sees an opportunity for a lithium discovery at Dudley as it is hosted in the right geology with historic work indicating lithium mineralisation potential.
Trinex said that initial drilling at Dudley will begin once statutory approvals have been received. It will focus on testing pegmatite and other anomalous targets identified from the currently underway soil sampling program, along with targeting pegmatites below its weathering profile.
Meanwhile, the transaction for EYL includes an issue of shares amounting to AU$100,000 and a cash payment of C$90,000 split between two vendors.
EYL will further expand Trinex’s large portfolio in the Northwest Territories, increasing its land position in the region to over 650 square kilometres. The company noted that EYL combines three projects, Lizo, Prelude Lake and Lightning. The project covers more than 15,000 hectares in the Yellowknife pegmatite district, including similar geological settings to its Halo-Yuri lithium project, the company stated.
Detailed satellite imagery will be purchased and interpreted for the Prelude Lake and Lightning projects as a first pass, with Trinex expecting field work to ground-check interpreted pegmatites will begin in the second quarter of 2025.
The acquisition of EYL is subject to Trinex obtaining shareholder approval for the issue of shares, which it intends to seek at the next annual general meeting on or around November 26.
Should everything go according to plan, completion of the transaction is expected in early December.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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