Lord Resources Ltd Surges In Value as MinRes Comes Knocking

Lord Resources Ltd (ASX: LRD) has executed a transformational agreement with a $13.3 billion-capped lithium producer Mineral Resources Ltd (ASX: MIN) over the Horse Rocks Lithium Project.

The company’s share price soared 96% to $0.10 in morning trade.

Horse Rocks comprise a 23.8 square kilometre exploration licence. It is 8 kilometres west of MinRes’ Mt Marion Lithium Mine hosting 66.1 million tonnes at 1.36% lithium.

The province is scattered with lithium projects, including Bald Hill, Kangaroo Hills, Faraday, Dome North, and Buldania.

Both Lord Resources and MinRes are interested in jointly developing the project, where previous exploration by Lord has identified multiple stacked LCT pegmatite swarms.

This binding farm-in with MinRes provides Lord with non-dilutive funding and expertise in lithium exploration and production.

Under the terms of the agreement, MinRes has the right to acquire an initial 40% legal and beneficial interest in Horse Rocks by funding $1 million of expenditure within 18 months.

Stage 2 includes an additional $5 million expenditure to move to 70%, and Stage 3 funding through to a decision to mine for 85%.

The agreement validates the strong work Lord has already completed at Horse Rocks.

This deal provides Lord with a dual exploration strategy, as they look to ramp up exploration at the Jingjing Lithium Project.

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