Lithium explorer Greenpower Energy (ASX: GPP) has added another lithium and nickel project to its Guyana portfolio after securing a binding heads of agreement with Kopang Resources Inc.
Situated within the mining-friendly and lithium-rich Guyanese district, the new Kopang project comprises 320,000 acres.
Previous exploration work at the Kopang identified 20km of strike with significant lithium and associated minerals uncovered in stream samples.
As part of the agreement with Kopang Resources, Greenpower Energy can earn an initial 35% interest in the project via a $70,000 cash payment, plus a 10 million share issue to Kopang Resources and spending A$250,000 on exploration. Two other phases have been built into the agreement amounting to a final 74% stake in the project including further cash, share issues and exploration expenditure to carry the project through to finalising a bankable feasibility study.
“The addition of the exciting and prospective Kopang area to the company’s existing project suite is beneficial from a number of perspectives, including consolidating the company’s position as a leader in the Guyanese lithium space,” Greenpower executive chairman Gerard King said.
Mr King added the data the company already has for the Kopang project indicates it could rival the prospectivity of its Morabisi project, with early exploration returning more than 20 lithium values equal to or better than the best results from phase one exploration at Morabisi.
According to Mr King, the project acquisition has been staged to de-risk the project without jeopardising its bottom line or diluting its equity.
“Alternatively, Greenpower may accelerate development at any time should promising results be achieved from the project,” he said.
Phase one exploration at Kopang is due to start “promptly” and undertaken through the region’s dry season, which runs between February and late April.
Late last month, Greenpower reported high grade lithium oxide up to 2.63% had been identified at the Morabisi lithium-tantalum-rare earths project.
At the time, Mr King said the initial trending results indicated lithium greater than those encountered at the renowned Pilgangoora project in Western Australia. Exploration is continuing at Morabisi with a further two holes drilled, and the team is preparing to move to another part of the project.
Pilbara Minerals owns the renowned Pilgangoora lithium project which is due for commissioning in early 2018. The project hosts proved and probable reserves of 80.3 million tonnes grading 1.27% lithium oxide and 123 parts per million of tantalite.
A definitive feasibility study published in late 2016 projected the Pilgangoora project could reap A$9.23 billion in revenue.
Greenpower shares were up more than 14% in early afternoon trade.