RE: Errawarra going nuts15 May 2024 07:48
ERW had over a year and couldn't find any rock samples over 1% on their own ground.
They send their team to Pinderi Hills, identify the pegmatite swarm and their SP starts to rocket.
They need to spend A$1M to earn 25% of the lithium rights at Pinderi Hills.
Then need to spend additional A$2.5M within 36 months to earn a further 25%.
IMO, now that the AZS takeover has been completed, M&A across the Karratha lithium belt would have happened before they can earn 50% of the lithium rights.
But if they manage to spend A$3.5M on Pinderi Hills before M&A kicks in, then the re-rate on our lithium (currently UFO have zero lithium resource) would be significantly higher than giving up 50%.