Alchemy Resources partners with JOGMEC for lithium exploration at Roe Hills

Alchemy Resources (ASX:ALY) has announced a farm-in and joint venture agreement with the Japan Organization for Metals and Energy Security.

The agreement involves sections of the Roe Hills target areas, part of Alchemy's Karonie Lithium and Gold Project in Western Australia.

The targeted areas, considered highly prospective for lithium, cover 248km2 of the 694km2 Karonie Project.

Under the agreement, JOGMEC has the option to earn a 51% interest in the Roe Hills tenure by investing up to $6,000,000 in exploration by March 31, 2029.

Initial expenditure commitment is set at $600,000 by March 31, 2025. Alchemy will oversee exploration activities during the farm-in period.

"This is a fantastic outcome for Alchemy and a great endorsement for the Karonie Project. The farm-in and joint venture deal gives a clear path for exploration at Roe Hills in the medium term," commented James Wilson, CEO of Alchemy Resources.

The joint venture is pending approval from the Australian Foreign Investment Review Board.

Upon completion of the staged farm-in periods, each party can elect to contribute to its pro-rata share of future funding, with dilution conditions and a possible 1% net smelter royalty for non-contributing parties.

Alchemy Resources focuses on the discovery and development of gold, base metals, and battery metals within Australia, holding significant interests in several key projects.

At the time of reporting, Alchemy Resources' share price was $0.0080.