Trinex Minerals, an Australian mineral exploration company, has entered binding agreements to acquire lithium assets in South Australia and Canada.
The company is set to obtain up to a 90% interest in the Dudley Lithium Project on Kangaroo Island, South Australia, and mineral claims within the East Yellowknife Lithium Project in Canada's Northwest Territories.
Trinex Minerals has paid an option fee of A$75,000 ($50,332) to South Australia Lithium (SALi) for the Dudley Project, notable for its extensive pegmatite systems.
The company has also committed to financing A$86,000 for initial work at Dudley until 12 December 2024.
To earn a 51% interest in Dudley, Trinex will then pay A$75,000 in cash, issue A$200,000 in shares to SALi and commit at least A$700,000 to exploration.
In stage two, the company will pay A$150,000 in cash, issue an additional A$200,000 in shares to SALi and fund up to A$1.4m in exploration expenses.
SALi will receive 100 million performance rights, subject to shareholder approval, alongside the share issuance in the first stage of the farm-in.
For the East Yellowknife Project, Trinex will issue shares to DG Resource Management and Aurora Geosciences and pay C$90,000 ($969,896), also granting a 2% net smelter return royalty to the sellers.
The acquisition is contingent on shareholder approval and is expected to be completed by early December 2024.
Fieldwork at Dudley is already in progress, with a 1,000 soil sample programme aimed at identifying lithium and pathfinder element anomalies.
Following statutory approvals, drilling will commence to explore the Dudley pegmatite and other targets, focusing on areas where lithium mineralisation is likely to be preserved below the weathering profile.
In Canada, Trinex's plans include purchasing satellite imagery for the Prelude Lake and Lightning Projects and initiating fieldwork in the second quarter of 2025 to verify the interpreted pegmatites.
The company has also engaged Dahrouge Geological Consulting for technical expertise and exploration oversight in the region.
Trinex managing director Will Dix said: “I am delighted to announce these strategic acquisitions, which expand and strengthen our lithium exploration footprint in Australia and Canada.
“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.
“The fundamentals of the Dudley Lithium Project are very exciting, hosted in the right geology with historic work indicating lithium mineralisation potential. We see the opportunity for a lithium discovery at depth where no drilling has been completed.”
In May this year, Trinex, via its Canadian subsidiary Trinex Lithium, signed a definitive agreement with ALX Resources to acquire up to 75% of the Gibbons Creek Uranium Project in Saskatchewan.
