Lightning Minerals Ltd (ASX:L1M) is expanding its portfolio to Brazil and is set to pick up Bengal Mining Pty Ltd, which holds option agreements over two lithium projects in Brazil’s prolific Lithium Valley district in the state of Minas Gerais, through a wholly owned subsidiary.
Transformative move
The company says the move on Brazil will be “transformative” for its future, leveraging the strategic proximity of the Caraíbas and Sidrônio projects to Latin Resources’ Colina Project, which hosts 70.3 million tonnes @ 1.27% Li20 and Sigma Lithium’s Grota do Cirilo Project, which boasts 108.9 million tonnes at 1.41% Li20.
Bengal is a privately held Australian company which holds exclusive options across all seven tenements totalling 3,372 hectares.
Multiple pegmatites have been identified at the Caraíbas Project, with peak lithium rock chip assay results grading up to 0.53% Li2O (lepidolite), along with significant pathfinder results - tantalum (1,245 ppm), rubidium (1,175 ppm) and caesium (1,455 ppm) in rock chip assays.
The strong aeromagnetic geophysical trends found at the projects correlate with regional mineralised trends.
What’s more, the projects lie within the geology of the Salinas Formation which hosts other lithium resources in the region.
The proposed transaction is based on resource milestones of 5 million, 10 million and 20 million tonnes, which present significant upside at both a project and company level.
Access to local experts
Lightning is also fortunate to have access to a seasoned field team that holds significant local IP, providing invaluable fieldwork expertise and insights so the new owners can hit the ground running on a new continent.
In addition, the company has built regional relationships to facilitate project growth.
Lightning is targeting A$1.5 million at A$0.07 per share through an oversubscribed placement to facilitate a works program.
Fieldwork is set to commence as soon as the deal is sealed and there is company EGM approval.
Managing director Alex Biggs said: “This proposed acquisition represents a significant transaction for the company.
“We believe in the lithium thematic and see now as a great opportunity to acquire highly prospective projects in known and established lithium regions.
“Minas Gerais in Brazil has emerged as a proven lithium hub with the acquisition located in close proximity to the world-class lithium resources of Latin Resources’ (Latin Resources Ltd (ASX:LRS, OTC:LRSRF)) Colina project and Sigma Lithium’s (NASDAQ: SGML) Grota do Cirilo project.
“The project presents some excellent early indicators of lithium mineralisation with prospective underlying geology that offers clear exploration targets.
“As part of the transaction, we welcome new key shareholders to the company and look forward to the next stage of evolution of the business.
Expanded influence
“It is exciting to see the company developing and expanding our influence; we now have projects in three of the predominant lithium regions in the world: Dundas in Western Australia, Quebec in Canada and Mina Gerais in Brazil.
“We look forward to starting our on-ground works in Brazil and also progressing works on our other projects in Western Australia and Canada.”
Minas Gerais, Brazil's third-largest economy, hosts more than 300 mines with big-name operators such as Vale, BHP (ASX:BHP) and Rio Tinto (ASX:RIO).
The state is known for its robust mining workforce and cost-effective exploration and project development environment, supported by mature infrastructure, hydroelectric power and road access.
The Caraíbas and Sidrônio projects are in the Eastern Brazilian Pegmatite Province, spanning around 150,000 square kilometres from Bahia to Rio de Janeiro.