Green metals explorer Lord Resources has confirmed that Mineral Resources (MinRes) has completed its due diligence for the binding farm-in agreement both parties signed in late March.
The farm-in agreement focuses on the Horse Rocks lithium project, located 8km west of MinRes’ Mount Marion lithium mine.
Under the transaction, MinRes has the right to acquire an initial 40 per cent interest in the Horse Rocks lithium project by funding $1 million in exploration.
MinRes has already started funding Horse Rocks exploration, with field work at the site recommencing. The mapping and rock sampling will assess new targets, along with refining previously identified areas of interest.
Lord’s Jingjing lithium project has also seen good progress, with soil sampling completed.
The work was designed to infill sample over four high priority anomalies, allowing for refinement of the extent and geometry of drill targets. A total of 877 samples were submitted to the laboratory for ultrafine analysis. The results are expected in June.
To fund further exploration, Lord has received support from institutional and sophisticated investors and existing shareholders to raise $1.5 million. Lord is offering to issue 30 million shares at $0.05 per share.
“I would like to thank all shareholders and welcome new investors that have committed to the placement, the strong response to this well-bid placement reflects the quality of the Lord projects, located in some of Western Australia’s most exciting lithium addresses,” Lord Resources executive director Barnaby Egerton-Warburton said.
“Placement funds will be used to explore the company’s Horse Rocks and Jingjing Lithium projects as well as access new opportunities in the battery and critical minerals space.”