Alba Mineral Resources plc announced that it has acquired an option to purchase a 50% interest in a package of highly prospective lithium exploration licences in the West Pilbara, Western Australia. Alba has secured an option to acquire an initial 50% interest in the lithium rights over the highly prospective Andover West Lithium Project in the West Pilbara,Western Australia, comprising exploration licence E47-3373 and exploration licence application ELA47-4844. A significant amount of lithium exploration activity has taken place in neighbouring tenements in recent years, including the discovery at the Andover Project immediately to the east of AW2 of numerous thick, high-grade lithium intersections (e.g. 209.4m @ 1.42% Li2O).

The Andover Project's 60% owner, Azure Minerals, is currently the subject of an approved takeover by Hancock Prospecting and SQM which values Azure at AUD 1.7 billion. Western Australia already hosts four of the world's biggest lithium mines, with combined reserves exceeding 500 Mt. Favourable geology within the Optioned Licences is indicative of the significant lithium potential of the Andover West Lithium Project: The adjacent West Pilbara Lithium Project has identified mineralisation within pegmatites in the Roebourne group basalts.

These basalts are also present in the Optioned Licences. Large NE-SW trending structures present in the Roebourne basalts within AW1 have shown high lithium anomalies (1.8%Li2O) further south-west in the Osborne JV tenement. A small section of the Andover Intrusion is present in the north-west of AW2.

Given the Andover Intrusion hosts the Azure Lithium Discovery(with atarget estimate of 100-240 million tonnes grading 1.0-1.5% Li2O), this represents a priority target for future exploration. If, following the carrying out of confirmatory due diligence during the initial 30-day option period, Alba elects to exercise the option for a 50% interest in the lithium rights over the Optioned Licences, it will pay GBP 250,000 in Alba shares at a premium of 25% above the VWAP of Alba ordinary shares in the 15 trading days prior to the exercise of the option plus 1 for 1 attaching 12 month share warrants at an exercise price of 0.2p per share. An unincorporated joint venture shall be formed for the exploration of the lithium rights over the Tenements, with each party contributing to expenditures on a pro rata basis and Alba being appointed Manager with ultimate responsibility for setting budgets and work programmes.

Alba shall have pre-emption rights and a separate tag-along right in respect of any sale or disposal by the other JV partner of its 50% of the lithium rights in the Tenements.