MQR And Mineral Resources (ASX:MIN) Agree To Accelerate Farm-In At WSP

Marquee Resources Limited (“Marquee” or “Company”) (ASX:MQR) is pleased to announce that it has agreed to accelerate the Farm-In agreement with Mineral Resources Limited (ASX:MIN) (MinRes) at the West Spargoville Project (“WSP” or “Project”).

• MQR and Mineral Resources Limited (MinRes) have agreed to accelerate the Farm-In Agreement in respect to the lithium (only) rights at MQR’s West Spargoville Project (WSP).
  
• MinRes has now acquired an initial 25% interest in the lithium rights at WSP by funding ~$4,800,000 on exploration activities at the Project in less than 12 months. MinRes also funded $500,000 to exercise the Fyfehill option. In recognition of MinRes’s commitment to the Project and to further strengthen the partnership between the companies, MQR has agreed to accelerate the Farm-In terms.
• MQR and MinRes have agreed to establish an unincorporated Joint Venture (JV) with the JV interests currently being Marquee (75%) and MRL (25%).
• MinRes can now elect to proceed either with a Processing Farm-in or a Mining Farm-in at the WSP Project.
• Under the Processing Farm-in:
  • MinRes can earn an additional 45% interest (MQR 30% / MinRes 70%) in the lithium rights by funding the Project until the point of a final investment decision on a mine development for the Project (FID) within 5 years.
  • MinRes will provide complete mine to port services to the JV.
• Alternatively, under the Mining Farm-in:
  • MinRes can earn an additional 26% interest (MQR 49%/MinRes 51%) in the Lithium rights at the Project by funding the Project until the development, construction and commissioning of a mine and related facilities for the conduct of mining operations on the Project within 5 years.
  • a Mine Gate Sale Agreement would be entered into between MinRes and MQR pursuant to which MinRes will build, own and operate all plant, equipment and infrastructure for the mining operations on the Tenements and buy Lithium bearing ore for a mine gate sale price on commercial terms.
• MinRes will continue to sole fund all exploration and development costs at WSP until a Processing Final Investment Decision or a Mining Final Investment Decision is made.
• MQR and MinRes are currently reviewing all the data of last year’s exploration campaign and expect to announce the 2023 exploration program details in the near term.

MinRes has now acquired an initial 25% interest in the lithium rights at WSP by funding ~$4,800,000 on exploration activities at the Project in less than 12 months. MinRes also funded the $500,000 to exercise the Fyfehill option. In recognition of MinRes’s commitment to the Project and to further strengthen the partnership between the two companies, MQR has agreed to accelerate the Farm-In terms. As such MQR and MinRes have agreed to establish an unincorporated Joint Venture (JV) with the JV interests currently MQR (75%) and MRL (25%).

MinRes is a recognised leader in the construction and operation of hard rock lithium mines in Western Australia and bring tremendous technical, operational and financial capacity to the West Spargoville Lithium Project as Marquee’s JV partner at WSP.

Executive Chairman Comment:

Marquee Executive Chairman, Mr Charles Thomas, commented:

“I am pleased to announce the acceleration of the Farm-In Agreement, reflecting the significant progress we have made with Mineral Resources (ASX:MIN) at the West Spargoville Project. We signed our partnership agreement with MinRes less than one year ago and have formed a very close working relationship with the team there during this period. By accelerating the Farm-In agreement and officially forming this JV with MinRes, we hope to further capitalise on the extensive knowledge and technical capabilities that they have. We are confident that this is only the beginning of a promising discovery and development journey between the two companies."

Key Terms:

• MQR and MinRes have amended the legally binding term sheet for a Farm-in and Joint Venture agreement at the West Spargoville Project in Western Australia.
  
• The parties have agreed to establish an unincorporated joint venture in relation to the WSP Project from the JV Commencement Date. The purpose of the JV will be to develop, mine, process and produce Lithium from the WSP Project. The JV interests are currently MQR (75%) and MRL (25%).

(Processing Farm-in)

• If MinRes elects to proceed with the Processing Farm-in, it has the right to acquire an additional 45% legal and beneficial interest in the lithium rights by funding the Project until the point of a final investment decision on a mine development for the Project (FID) within 5 years. MinRes will provide complete mine to port services to the JV including: mining; design, construction and operation of a processing plant; on-site power generation; haulage of product to nominated port facilities; marketing of product; and shipment of product to purchasers.

(Mine Gate Sale Farm-in).

• If MinRes elects to instead proceed with the Mine Gate Sale Farm-in, it has the right to acquire an additional 26% legal and beneficial interest in the lithium rights by funding the Project until the development, construction and commissioning of a mine and related facilities within 5 years. MinRes will build, own and operate all plant, equipment and infrastructure for the mining operations and buy lithium bearing ore from the JV for a mine gate sale price to be established on commercially competitive and industry standard terms.
  
  MinRes will continue to sole fund all exploration and development costs at WSP until a Processing Final Investment Decision or a Mining Final Investment Decision is made.

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