Alba Mineral Resources PLC has announced the acquisition of an option to purchase a 50% interest in a package of highly prospective lithium exploration licenses in the West Pilbara, Western Australia. The Andover West Lithium Project, comprising exploration license E47-3373 ("AW1") and exploration license application ELA47-4844 ("AW2"), has shown significant lithium potential, with neighboring tenements reporting thick, high-grade lithium intersections. The Andover Project's 60% owner, Azure Minerals, is currently the subject of an approved takeover by Hancock Prospecting and SQM, valuing Azure at A$1.7 billion.
Western Australia already hosts four of the world's biggest lithium mines, and the favorable geology within the Optioned Licenses indicates significant lithium potential. Alba has secured an option to acquire an initial 50% interest in the lithium rights over the Andover West Project and will pay GBP 250,000 in Alba shares if it elects to exercise the option. An unincorporated joint venture will be formed for the exploration of the lithium rights over the tenements, with Alba being appointed Manager. The company also has pre-emption rights and a separate tag-along right in respect of any sale or disposal by the other JV partner of its 50% of the lithium rights in the tenements.
George Frangeskides, Alba's Executive Chairman, expressed delight in securing the option, stating, "We now have a foothold in a world-class mining district to explore for a commodity that is absolutely fundamental to the global energy transition." The Andover West 1 and Andover West 2 licenses have previously been explored for gold and iron ore, but have not been the subject of any concerted lithium exploration. The area shares many geological characteristics with other highly prospective licenses in the neighboring area, indicating strong potential for lithium exploration.