16 Jul MGX Minerals signs lithium JV with Belmont Resources in Nevada
Canadian junior MGX Minerals has strengthened its lithium credentials by signing a joint venture with Belmont Resources for a potential project in Nevada’s Great Basin.
Under the agreement MGX will acquire a 25% interest in the Kibby Basin, which is located approximately 50 km North of Clayton Valley – home to the Silver Peak mine, owned by North America’s only lithium producer Abermarle.
MGX will fund up to C$300,000 towards exploration, in the shape of drilling at Kibby and can earn a further 25% interest in by funding another $300,000 in exploration drilling, at which point the project will become a 50:50 JV.
At this stage the project will also gain access to MGX’s rapid lithium extraction technology. The company grabbed headlines earlier this year for testing a technology that turns oil and gas wastewater into lithium.
The Kibby project stretches over 2,560 acres in Esmeralda County, Nevada. Geologic research has shown that rhyolitic flows and tuffs surrounding the basin could be a potential source of lithium brine in the Kibby Basis Playa.