Morella Corporation Limited has entered into an indicative, non-binding term sheet with Elevra Lithium Limited to expand their existing Western Australian exploration joint venture by adding four new projects: Deep Well, Mt Dove, Mount Satirist, and Station Peak.

Under the proposed transaction, Morella will secure the exclusive right to earn a 51% participating interest across the four additional projects by funding A$300,000 in qualifying exploration expenditure over two years. Upon completing the earn-in, Elevra will retain a 49% participating interest, with both parties contributing to future expenditure proportionally.

Morella will take over management and operation of the newly added projects from commencement. The arrangement also broadens the existing joint venture scope to include all-minerals rights across the joint venture tenure, while existing mineral rights arrangements at the Mallina and Mt Edon projects remain unchanged.

“Morella and Elevra have worked together in Western Australia for a number of years and we see this as a sensible evolution of that relationship.”

— James Brown, Managing Director

The partnership between Morella and Elevra previously established joint venture exploration arrangements covering properties such as the Mallina project. The newly added assets incorporate a mix of previously explored and earlier-stage tenure supported by existing geological, geophysical, geochemical, and drilling datasets.

“The transaction provides Morella with additional exploration opportunities that complement our existing portfolio while allowing Elevra to retain meaningful exposure to any future exploration success.”

— James Brown, Managing Director

Following the execution of the term sheet, Morella and Elevra will proceed with definitive documentation to formalise the expanded joint venture arrangements. The transaction remains subject to the completion of due diligence and any required regulatory or third-party approvals.

Morella anticipates that Mt Dove will serve as an initial exploration priority within the expanded portfolio, building on existing airborne magnetic data that identified targets beneath transported cover. Meanwhile, the company continues to progress a maiden JORC Mineral Resource Estimate for the Mt Edon project following the completion of its reverse-circulation drilling programme.

Read the full announcement: Morella and Elevra Expand WA Exploration JV