Shares in ASX listed Olympio metals soared today on the back of news it has agreed to work with lithium king in the making Liontown Resources.
Lithium is in hot demand as car makers across the world scramble to secure supply, as electric vehicle demand soars and new government mandates align for a phase-out of internal combustion engines.
Liontown resources are currently under a bidding war for control and ownership.
Today Liontown (ASX:LTR) and (ASX: OLY) said they will join forces on the early stage Mulline and Mulwarrie lithium resources in the eastern goldfields of Western Australia.
“We are very pleased to partner with Liontown, a well led company that has significant lithium discovery and development experience,” OLY managing director Sean Delaney says.
“With Liontown’s Kathleen Valley mine under construction, they recognise the importance of the discovery of further lithium deposits.”
Highlights of the Liontown and Olympio agreement as follows:
• Liontown to complete 1,100 soil samples across the Projects before
progressing to Stage 1 earn-in
• Two-stage farm-in arrangement with Stage 1 to take Liontown to 51%
interest within 1 year
• At that stage, Olympio can request to end the farm-in and to form a joint
venture (JV), with Liontown funding 51% and Olympio 49%
• If Olympio elects to continue the farm-in, Liontown can earn a further 39%
within three years in Stage 2
Olympio shares soared 75% on the news Monday.
