Galileo Mining Ltd (ASX: GAL) has announced receipt of a further $1 million payment from Mineral Resources Ltd (ASX: MIN) under their Lithium Farm-In and Joint Venture Agreement (JVA).
The agreement, initially struck in mid-2024, governs exploration activities on lithium rights associated with Galileo’s Norseman Project in Western Australia, a region recognised for its significant lithium potential.
This latest payment reflects ongoing cooperation and progress in the joint lithium exploration efforts between the two companies.
Under the updated terms of the Lithium Exploration JVA, there is now a suspension on the earn-in period for up to two years starting from November 30, 2025.
During this period, Mineral Resources is permitted to conduct various low-impact, non-ground-disturbing exploration activities at its own cost, which include geological mapping, rock chip sampling, geochemical surveys, geophysics, as well as heritage and environmental surveys.
These activities allow MinRes to continue assessment without committing to full-scale exploration expenditures during the suspension.
MinRes has the option to restart the Earn-In Period at any time during the suspension by making an additional payment of $1.5 million to Galileo.
Once this payment is made, full exploration activities will resume, and MinRes will be required to spend $12.5 million (reduced from the previous $15 million) to meet the earn-in requirement, which secures their increased ownership stake of 55 per cent in the lithium joint venture.
The original agreement, executed in June 2024, had Mineral Resources securing 30 per cent of lithium rights on the Norseman tenement package through an initial $7.5 million payment arrangement.
Under the full earn-in conditions, MinRes could increase its joint venture stake first to 55 per cent by spending $15 million on exploration over four years and then to 70 per cent by funding the project through to a Decision to Mine, after which Galileo can choose to contribute to development or convert its interest into a royalty.
The Norseman Project itself is strategically located with excellent lithium potential and existing infrastructure, enhancing its prospects for resource development.
Galileo’s Norseman Project — covering 255 square kilometres north-west of Norseman, Western Australia — is rich not only in lithium but also offers potential for palladium, platinum-group elements (PGEs), nickel, and cobalt.
