Germany-based metal firm Deutsche Rohstoff has agreed to a A$4 million joint venture to support acquisition and exploration of lithium prospects in WA that will be identified using SensOre's AI-enhanced targeting technology.
The pair announced their intention last year, and have now agreed terms that will see SensOre contribute $1.2 million cash to the JV, and will own a 30% participating interest.
It will also earn $1 million in consulting fees for defining at least eight targets.
Deutsche Rohstoff has agreed to chip in an initial $2.8 million for its 70% interest.
CEO Richard Taylor said the move into lithium was a natural evolution for SensOre, which raised A$7.5 million at 85c to list on the ASX and advance its technology development and drilling.
SensOre completed its first lithium targeting runs in December, prior to its February listing, with the early results described as promising.
In SA, Barton Gold already has a large ground position and 1.1 million ounces of gold, so SensOre's term sheet envisages adapting and refining its Discriminant Predictive Targeting tech for use over some 60,000sq.km in the Gawler Craton - targeting copper and gold.
The agreement is worth up to $400,000 in co-funding to add data to SensOre's SA data cube in the area surrounding Barton's existing tenements, with the understanding the pair will exclusively partner on targets, with Barton to validate any targets predicted by the AI.
Barton will also sign up as a client of SensOre's tech, with SensOre potentially leveraged to royalties from future production.
Barton will also join SensOre's South Australian gold and copper prospectivity mapping initiative which includes Hillgrove Resources, Argonaut Resources and Aroha Resources.
SensOre already claims one AI-defined gold discovery in the west, at Mount Magnet North in WA with 40% partner DGO Gold.
DPT predicated a large, shallow gold system, and early drilling has been encouraging. More detailed diamond drilling is ongoing, with early thinking suggesting it may be an intrusion-related deposit, similar to Ramelius Resources' Eridanus mine - a style of mineralisation not known in the century old mining camp.
In the lead up to its IPO SensOre had been progressively looking to expand its geographic and commodity spreads.
SensOre shares have traded between 62-86c since listing in early February, with the stock up almost 20% today to 74c, valuing it at $41 million.
