Bradda Head exercises option to buy 100% interest in Burro Creek

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Bradda Head Lithium Ltd (AIM:BHL) said it exercised its option to acquire 100% of the Burro Creek project area and a portion of Burrow Creek West.

It takes the total land area of sedimentary lithium claims held by Bradda Head in Arizona to 47 square kilometres.

There’s already a JORC resource of 185,000 tonnes of lithium carbonate equivalent on the newly acquired ground, but the resource is likely to be upgraded in the first quarter of this year, following a drill programme completed in December 2021.

"Our excitement about the assets we have has grown considerably over 2021,” said Charles FitzRoy, chief executive of Bradda Head Lithium.

“The combination of data from 2021 drilling, geophysical studies and further metallurgical studies have encouraged us to exercise the option, which in turn will reduce our yearly costs and the development risk in the assets dramatically. Bradda is fully funded to take its sedimentary assets to an early-stage technical study.”

The company finished 2021 with US$9.9mln in the treasury with a further US$5.5mln expected in as the company reaches certain resource expansion milestones as per an existing royalty agreement.

The company also expects to deliver a maiden resource at its Wikieup project in the second quarter of this year.

The option price is US$600,000, as previously agreed with the sellers.