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Highlights
- Industrial Minerals has gained an exclusive option to buy 80% interest in the non-construction material mineral rights
- The agreement gives exposure to the less explored HPQ and lithium potential
- The project’s location is very promising as it is near the assets of ASX-listed giants like Mineral Resources, Wildcat Resources and Pilbara Minerals
Shares of micro-cap firm Industrial Minerals Ltd (ASX: IND) skyrocketed by more than 123% to close at AU$ 1.005 apiece on Friday (27 October 2023). Today’s rally in IND shares was triggered by an announcement from the company. IND said it has bought an option allowing it to shift its focus to lithium.
The company shared that it has entered into an agreement of binding terms with North West Quarries Pty Ltd (NWQ), which provides a two-year option to buy an 80% stake in the non-construction materials mineral rights, comprising HPQ (high purity quartz) and lithium, at the Pippinagarra Quarry Project.
The project lies within the Pilbara region of Western Australia and neighbours some of the largest hard rock lithium mines globally. The project is located in close proximity to the Tabba-Tabba project of Wildcat Resources (ASX: WC8), Pilgangoora Lithium Operations of Pilbara Minerals Ltd (ASX: PLS) and Wodgina Lithium Operation of Mineral Resources Ltd (ASX:MIN).
IND informed through ASX update that the previous owners drilled 38 diamond holes. Out of the 38 drill holes, only one was assayed for lithium, and the results showed an intersection of 6m @ 3.73% Li2O from 26m. Moreover, to date, no other drill hole has been assayed for lithium from the total 442 drill holes.
Presently, IND has multiple tenements in the regions that have shown potential for lithium and High Purity Quartz (HPQ). This agreement allows the company to expand its activities in the region. Moreover, the company is seeking additional tenure near the Pippingarra Project.
Under the agreement, IND is required to pay AU$50,000 for the execution of the option agreement. Moreover, the company needs to spend at least AU$0.1 million annually on exploration during the option period of two years.
When the option is exercised, IND will issue shares to NWQ, worth AU$0.1 million.
Share performance of IND
Including today’s gain of 123.33%, IND’s share price increased by 151.25% in the past one year and climbed 142.17% in the past one week.
