Completion of Due Diligence and Start of Work Program – Brazil Lithium Projects Acquisition

Completion of Due Diligence and Start of Work Program – Brazil Lithium Projects Acquisition

Lightning Minerals (L1M or the Company) is pleased to announce the completion of due diligence on its transaction (ASX Announcement 22 April 2024) to acquire (Proposed Acquisition) of Bengal Mining Pty Ltd (Bengal). Bengal holds, via its wholly owned subsidiary Tigre Mineracao Ltda (Tigre) option agreements over two lithium projects, Caraíbas and Sidrônio (the Projects) in Brazil’s prolific Lithium Valley district in the state of Minas Gerais. This marks an important stage for the Company in its progress in finalising the Proposed Acquisition with the outstanding Extraordinary General Meeting (EGM) which will be held on the 13 June 2024 (ASX Announcement 13 May 2024).

Works will commence this week with a geological team beginning on ground reconnaissance works at the Projects in preparation for a site visit by Managing Director, Alex Biggs and Exploration Manager, Jarrad Woodland in early June.

HIGHLIGHTS

  • All due diligence satisfied on Bengal Mining and Caraíbas and Sidrônio projects. All Conditions Precedent met except shareholder approval which is sought at upcoming EGM
  • Contract geologists to begin on ground reconnaissance works this week
  • Projects located in the prolific Lithium Valley region of Minas Gerais 20km south of Latin Resources’ (ASX: LRS) Colina project
  • Multiple pegmatites have been identified at the Caraíbas Project, with peak lithium rock chip assay results grading up to 0.53% Li2O (lepidolite)1
  • Significant tantalum (1,245ppm), rubidium (1,175ppm) and caesium (1,455ppm) rock chip assay results are considered positive exploration indicators1
  • Strong aeromagnetic geophysical trends correlate with regional mineralised trends
  • Projects lie within geology of the Salinas Formation which hosts other significant lithium Resources in the region
  • Proposed Transaction based on 5Mt, 10Mt and 30Mt Resource milestones presenting significant upside at both a project and company level demonstrating vendor confidence
  • Managing Director, Alex Biggs to attend Lithium Summit 2024 in Belo Horizonte and site trip to Caraíbas and Sidrônio projects
Note 1: Further exploration work to verify historically mapped and sampled pegmatites is necessary. The scale of the geological outcrops are unknown and the presence of pegmatitic lithologies does not necessarily indicate the presence of lithium, tantalum or caesium mineralisation.

Note 2: The Company is optimistic about concluding the transaction and acquisition outlined herein, however at the date of this announcement no assurance that the outstanding conditions precedent with respect to the transaction will be met. Accordingly, investors are cautioned against making investment decisions based on this announcement.

Lightning Minerals Managing Director Alex Biggs said, “It is with great pleasure that we announce completion of due diligence on Bengal Mining and the Caraíbas and Sidrônio projects in Brazil’s Lithium Valley region of Minas Gerais. All Conditions Precedent (except shareholder approval which is sought at the upcoming EGM) have also been completed. Gaining access to these projects and this region of Brazil is a significant achievement for the Company and provides us with highly prospective lithium ground in one of the most prospective lithium regions globally. We are believers of the lithium and green energy thematic and have used the downturn in lithium prices as an opportunity to acquire projects that we see as cornerstones to our growth. We endorse Brazil as an excellent jurisdiction in which to do business and have some clear analogues from other operators in the region on how quickly projects can be defined and developed. I will be on the ground in early June to complete a site visit plus attend the Lithium Summitt conference in Belo Horizonte and look forward to updating you all on our progress”.

About the Projects and Minas Gerais as a Lithium Region

The Projects are located in the Lithium Valley region of Minas Gerais, Brazil. The Projects cover 3,372 Ha comprising seven (7) exploration licences and are located approximately 20km south of Latin Resources’ (ASX: LRS) Colina lithium project2 hosting 70.3Mt @ 1.27% Li20 and 60km north-west of Signa Lithium’s (NASDAQ: SGML) Grota do Cirilo project3 hosting 108.9Mt @ 1.41% Li20. The region has emerged as one of the world’s premier lithium districts over the past few years and presents significant exploration potential.

The Company will benefit from access to a seasoned ground team, providing invaluable fieldwork expertise and insights, enhancing the Company's strategic approach to exploration. Relationships the Company already has in the region will help facilitate project growth and advancement.

Minas Gerais is Brazil’s third largest economy with over 300 mines operating in the state with tier-1 operators including Vale, BHP and Rio Tinto. The state boasts a strong mining labour pool and presents a cost competitive jurisdiction for exploration and project development with mature infrastructure, hydro power and road access.


This article includes content from Lightning Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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