The exploration alliance has highlighted cobalt and lithium opportunities, for which secure tenure is now being sought, the company said.
Leading Edge will hold an initial 51% interest in the partnership company and will have the right to acquire up to a 91% interest by making certain payments in the shares of Leading Edge Materials (LEM).
There will be an initial payment of 367,000 LEM shares to the vendor, followed by payment of 550,509 LEM shares should an exploration license be granted within the exploration area, then a further payment of 917,515 LEM shares – bringing the company's stake up to 91% - on completion of a positive pre-feasibility study.
Leading Edge will incur all exploration costs with the local partner getting a “free carry” to the point of production.
A bonus payment of up to 1.84mln LEM shares will be paid should a historic resource of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% be identified within the exploration area.
A bonus payment of 2.2mln LEM shares is payable should an NI43-101 resource be calculated of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% within the exploration area.
"Leading Edge Materials has been actively seeking additional opportunities in the battery materials sector and we are pleased to accelerate this process through the incorporation of a subsidiary with a skilled local partner,” said Blair Way, the president and chief executive officer of Leading Edge Materials.