Each week, Mining Technology’s writers select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value or the highest profile, but it will tell us where the industry is focusing its efforts, and why. This thematic deal coverage is drawn from GlobalData’s Intelligence Centre, which collates information from across the sector.
The deal
Australian lithium explorer and developer Oceana Lithium has announced the purchase of 100% of Monaro Lithium Canada from Noranda Royalties, (Redevances Noranda), for a joint cash and shares package. Noranda will receive an upfront sum of A$225,000 ($170,000), alongside as many as 9.5 million Oceana lithium shares, bringing the deal’s total value to around A$3.45m ($2.6m). As part of the deal, Oceana will receive Monaro Lithium Canada, the holding company for 207 mineral claims, which comprises the Monaro Lithium Project in Quebec, Canada.
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The parties
Oceana Lithium is an Australian lithium explorer and developer, currently operating projects in the state of Ceara, Brazil, and Northern Territory, Australia. The Monaro Lithium project will be the company’s first operation in Canada.
Noranda Royalties is a Canadian investor in lithium projects across North America. The company purchases properties with high-yield lithium indications, primarily in the James Bay region of Quebec.
The implications
The 104km² plot of land that the project spans is located on one of the world’s most fruitful lithium exploration areas. The James Bay region houses a number of lithium investments from global miners including mineral giant Rio Tinto.
The Monaro project is situated in the same region as Winsome Resources’ Adina lithium discovery, 30km away. Winsome found high-grade lithium deposits in the area, constituting 1.77% Li2O in some areas.
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By GlobalDataOceana chairman Gino Vitale stated: “Oceana has worked with the vendors to bring together, for the first time in one consolidated package, over 40km of contiguous Archean greenstones with geological features considered to be favourable for the hosting of LCT-type lithium mineralisation.”
Vitale continued: “Importantly, the package includes known pegmatites and features extensive greenstone-granite contact zones where some of the major discoveries in the area have been found and, subject to access clearance from local authorities, we look forward to commencing the summer exploration campaign.”
In order to raise capital to fund the prospect’s exploration and potential development, Oceana is conducting a share placement. The oversubscribed placement will give Oceana $4.1m from the offering at $0.32 per share. The company is already proceeding with exploration at its Solonópole project in Brazil and its Napperby project in Australia.
