Trinex Minerals, an Australian mineral exploration company, has entered into binding agreements to acquire lithium assets in South Australia and Canada.
The company aims to secure up to a 90% interest in the Dudley Lithium Project on Kangaroo Island, South Australia, as well as mineral claims within the East Yellowknife Lithium Project in Canada’s Northwest Territories.
Trinex has paid an option fee of A$75,000 ($50,332) to South Australia Lithium (SALi) for the Dudley Project, known for its extensive pegmatite systems. The company has also committed to financing A$86,000 for initial work at Dudley until December 12, 2024.
To earn a 51% interest in Dudley, Trinex will subsequently pay A$75,000 in cash, issue A$200,000 in shares to SALi, and invest at least A$700,000 in exploration. In the second phase, the company will pay A$150,000 in cash, issue another A$200,000 in shares to SALi, and fund up to A$1.4 million in exploration expenses.
SALi will receive 100 million performance rights, subject to shareholder approval, alongside the share issuance in the first phase of the farm-in.
For the East Yellowknife Project, Trinex will issue shares to DG Resource Management and Aurora Geosciences and pay C$90,000 ($69,896), while granting a 2% net smelter return royalty to the sellers.
The acquisition is contingent upon shareholder approval and is expected to be finalized by early December 2024.
Fieldwork at Dudley is already underway, with a 1,000 soil sample program designed to identify lithium and pathfinder element anomalies. Following necessary approvals, drilling will begin to explore the Dudley pegmatite and other targets, focusing on areas where lithium mineralization is likely to be preserved below the weathered surface.
In Canada, Trinex plans to acquire satellite imagery for the Prelude Lake and Lightning Projects and initiate fieldwork in the second quarter of 2025 to verify the interpreted pegmatites. The company has also engaged Dahrouge Geological Consulting for technical expertise and exploration oversight in the region.
Managing Director Will Dix expressed enthusiasm for the acquisitions, stating, “I am delighted to announce these strategic acquisitions, which expand and strengthen our lithium exploration footprint in Australia and Canada. Securing a highly prospective lithium project in South Australia, one of the best mining jurisdictions in the world, is a significant achievement. The fundamentals of the Dudley Lithium Project are very exciting, with historic work indicating lithium mineralization potential. We see the opportunity for a lithium discovery at depth where no drilling has been completed.”
