China Magnesium Corporation Ltd acquires lithium project in Greenbushes
Date
9/29/2016 2:32:50 AM
(MENAFN- ProactiveInvestors - Australia)
China Magnesium Corporation Ltd (ASX:CMC) has secured a 40% interest in a lithium-tantalum project near the world";s largest lithium mine in Greenbushes, Western Australia.
The company";s shares were last trading 92% higher for the day, at $0.025.
The remaining 60% interest in the project is to be held by Shanghai Min Heng Science & Technology Development Co., which is associated with a diversified Chinese lithium producer.
The southwest corner of the project is only 2 kilometres from the eastern boundary of Tianqi Lithium and Albemarle Corporation";s Greenbushes Lithium Operations.
Greenbushes Lithium is the world's largest hard-rock lithium resource where Tianqi has just announced its intention to build a $400 million plant.
China Magnesium";s tenements are considered prospective for pegmatite-hosted lithium and tantalum deposits, being situated in the same geological terrane as Tianqi";s operations.
Joint venture partner Shanghai Min must contribute an initial $1 million for its 60% interest, within 30 business days of signing formal agreements.
The companies are planning a detailed systematic field exploration program, including regional soil and stream sampling program.
This is intended to be followed by infill sampling of anomalous areas and possibly other geophysical surveys to define drill targets, followed by drill testing if justified.
China Magnesium remains focussed on becoming an integrated producer of magnesium, semi coke, tar oil and other industrial products, while continuing to seek diversified opportunities. <
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