ASX:VMC $0 .000

Venus Metals Corporation Limited subsidiary has entered a binding transaction with a subsidiary (“IGO Subsidiary”) of IGO Limited (ASX: IGO) regarding exploration and, if warranted, development and mineral extraction at the Henderson Nickel-Lithium Project.

Highlights:

  • Farm-in and Joint venture in which IGO Subsidiary can progressively acquire up to a 70% interest in the Project by incurring A$4,000,000 of exploration expenditure on the Project and reimbursing VMC A$1,000,000.

  • IGO Subsidiary will solely fund all Joint Venture expenditures until the completion of a pre-feasibility study in relation to the Project.

  • If IGO Subsidiary completes a pre-feasibility study, it has the right to acquire Venus Subsidiary's 30% interest in the Project for a price based on fair market value less an apportioned aggregation of IGO Subsidiary expenditure incurred in relation to the Project.

Should IGO Subsidiary not acquire the 30% interest, the parties will continue to be associated with an unincorporated joint venture.

Project Background

Venus Metals Henderson Lithium Gold Nickel Project comprises five exploration licences covering an approximately 800 km2 area along the central section of the Mt Ida/Ularring Greenstone Belt, 50km northwest of Menzies in the Eastern Goldfields of Western Australia. 

VMC tenement E30/520 covers about 25 km strike length of the Mt Ida/Ularring Greenstone Belt, which is historically known for its gold and nickel potential but is also recently recognised as an emerging Lithium Province. In recent times, Delta Lithium Ltd (ASX: DLI) has identified a substantial pegmatite hosted lithium deposit at Mt Ida, located directly north from and abutting VMC tenement E30/520 which currently stands at 14.6mt @ 1.2% Li2O (see ASX release for Delta Lithium Ltd dated 14 February 2024). Mt Ida also hosts a gold resource of 412koz @ 4.1g/t Au.

Delta Lithium is Chaired by Mineral Resources Ltd (ASX: MIN) founder Mr Chris Ellison and also has attracted iron ore producer Hancock Mining Pty Ltd and renowned global lithium investment fund Waratah Capital Investors as shareholders.

VMC has initiated a review into the hard-rock lithium potential of the Henderson tenements. Available historical geological mapping confirms the common presence of pegmatite dykes crosscutting the greenstone sequence at VMC’s Snake Hill and Emerald South Prospects (open file reports A14919, A21888), but no historical data on pegmatite composition has been identified. 

The focus is on tenement E30/520 (90% Venus, 10% Prospector) and E29/1112 (100% Venus) and is targeting potentially lithium-bearing pegmatites.