OAR Resources (ASX:OAR) has secured up to A$1.75M in capital to accelerate exploration and development activities at its battery and critical mineral assets in Western Australia and South Australia.
This includes the Denchi Lithium Project in WA and the Oar Graphite Project in SA, with planned activities at these projects including drilling, an upgraded JORC Resource, and the commencement of feasibility studies.
The development comes after the company evaluated multiple funding options and concluded the Convertible Note structure was most favourable to execute its near-term strategy of unlocking value from its wholly owned Oar Graphite Project in South Australia and Denchi Lithium Project in Western Australia.
OAR completed the acquisition of the Denchi Lithium Project in November 2022 and earlier this year submitted applications for five additional prospective tenements to expand the project area to more than 1,000sq. km.
The decision to expand the project area followed field reconnaissance in December 2022 which identified several potential lithium bearing pegmatites outcropping within granites previously mapped by the Geological Survey of Western Australia.
OAR is actively seeking opportunities to develop the Oar Graphite Project, located in the centre of the Eyre Peninsula and contains a combined JORC 2012 Indicated and Inferred Mineral Resource Estimate (MRE) of 13.47Mt @3.3% TGC, including 6.31Mt @4.7% TGC.
OAR is planning to undertake a new 5,000m Air Core drilling program at the Oar Graphite Project to expand the existing MRE, which remains open along strike and at depth, and to provide fresh samples for the next stage of test work.
The company has already received Program for Environment Protection and Rehabilitation (PEPR) approval from the Department of Energy and Mining South Australia and has commenced landholder engagement in preparation for the planned drilling campaign.
“With the funding secured we have a clear pathway to undertake and accelerate our exploration and development work at both projects. We are excited at the potential that both the Denchi Lithium and Oar Graphite Projects offer, and the opportunity to execute on additional activities such as drilling, an upgraded JORC Resource, and the commencement of feasibility studies.
“It’s another important milestone in particular the commodities which play such a critical role in the emerging green technology economy and form a key part of OAR’s strategy to build a portfolio of assets focused on battery and other critical minerals.”
GBA Capital acted as Lead Manager to the raising.
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