Australian exploration company Octava Minerals has agreed to acquire a 100% stake in the Talga lithium project in Pilbara, Western Australia, from First Au.

Octava already holds a 70% stake in the project. With this agreement, it will acquire the remaining 30% stake from First Au. The deal also includes First Au’s 20% free carried interest to a decision to mine.

Octava has agreed to pay $200,000 (A$310,817) and issue 1.25 million shares to the company. These shares will be escrowed for six months. The transaction also includes a 0.75% net smelter royalty.

The Talga project has potential for the identification and discovery of lithium-caesium tantalum pegmatites. Spread across 202km², the project is located 30km to the north of Marble Bar.

Exploration programmes at the project will primarily target lithium and gold. The project has eight granted exploration licences.

The project is located next to the recently identified Archer lithium deposit and has a similar geological setting. The company is planning to conduct drill tests in the near future.

Talga also has potential for gold deposits, hosting the same mineralised Archean greenstone stratigraphy and structure as Calidus Resources’ Warrawoona gold discovery.

The Razorback gold prospect at Talga has recorded significant gold intersections but has only drill-tested around 700m.

Octava managing director Bevan Wakelam said: “We are pleased to secure 100% of the Talga Project in a sought-after region for lithium exploration in Pilbara. There is highly prospective geology at Talga that has already provided initial indications of the potential for discovery.

"We will continue to actively conduct detailed exploration programmes over the project area.”