Voltaic Strategic Resources In $12M Deal With Delta Lithium For Ti Tree Project

Voltaic Strategic Resources Ltd (ASX: VSR) has executed a farm-in with Delta Lithium Ltd (ASX: DLI) for the Ti Tree Lithium Project in Western Australia.

The $12 million two-stage earn-in deal would see Delta obtain an 80% interest in the lithium project over four years.

The binding farm-in and strategic joint venture covers Voltaic’s Ti Tree Project will expand the potential and scale of Delta’s Yinnetharra Lithium Project which currently hosts 26 million tonnes at 1% lithium.

Ti Tree is located in the Gascoyne Region within the ‘Volta Corridor’, an 80-kilometre interpreted prospective corridor of lithium, cesium, tantalum (LCT)-bearing pegmatites containing Delta’s Yinnietharra lithium discovery.

The ‘Volta Corridor’ is underlain by the ThirtyThree Supersuite – a belt of granitic plutons (intrusions) that have previously been shown to be fertile for LCT mineralisation.

Delta has rapidly advanced Yinnetharra, completing over 115,000 metres of drilling and delivery of a significant maiden resource within just over a year since acquiring it.

The addition of Ti Tree’s to the Yinnetharra Lithium Project enhances the potential for a long-life lithium operation in the area.

The deal provides Voltaic with significant near-term catalysts associated with project development activities and a de-risked pathway to production and cash flow.

It is also a further boost to Voltaic’s pro forma cash reserves to $7.25 million, providing scope for new opportunities.

Exploration will accelerate at the Paddys Well and Meekatharra projects.

Deal terms

  • $1.25 million cash consideration upon commencement of the agreement.
  • Delta has the right to earn a 51% interest by spending $3.0 million of exploration expenditure within 24 months, with a minimum spend of $1.0 million (Stage 1).
  • Delta may earn an additional 29% interest by further expenditure of $6,250,000 or delivery of a Mineral Resource Estimate at> 10 million tonnes at 0.8% lithium within 3 years (Stage 2).
  • Voltaic will receive a further $0.5 million payment in cash/script from Delta upon commencement of Stage 2.
  • A further $1.0 million payment in cash/script to Voltaic from Delta upon completion of Stage 2.

On completion of Stage 2, Voltaic can elect to either maintain its 20% by co-contributing. Or it can be decided to divest its 20% interest to Delta at fair market value as determined by an independent expert.

The deal would position Voltaic with a significant cash war chest for new opportunities.

 

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