How Venari Minerals Secured Critical Water Rights to Boost Red Mountain Lithium Project

Strategic Acquisition of Water Rights

Venari Minerals NL (ASX, VMS) has announced a binding Option Agreement to secure private water rights and an adjacent property near its Red Mountain Lithium Project in Nevada, USA. The acquisition includes 592,000 cubic meters (approximately 480 acre-feet) of water rights annually and a 45.7-hectare parcel of land located less than 6 kilometers from the project site in Railroad Valley. This transaction is a critical milestone in de-risking the project’s development pathway, particularly given Nevada’s status as one of the driest states in the US.

Water access is a fundamental requirement for lithium mining operations, especially in arid environments where supply is limited and competition is intense. By securing these water rights on favourable terms, Venari is effectively addressing a key operational risk that often challenges mining projects in similar regions.

Transaction Details and Industry Endorsement

The deal, negotiated with American Battery Technology Company (NASDAQ, ABAT), involves a total consideration of US$400,000. Venari will pay an option fee partly in shares, 1.95 million VMS shares valued at around US$190,000, and a cash payment of US$210,000 upon exercising the option within the next 12 months. The option must be exercised by 7 December 2026, with the possibility of relocating the water rights closer to the Red Mountain site pending state approval.

Venari’s Chairman, Tony Leibowitz, highlighted the significance of this agreement, noting that the acceptance of Venari shares as part of the payment by ABTC reflects a strong vote of confidence in Venari’s investment proposition. This partnership underscores the growing interest and collaboration within the lithium sector as companies seek to secure critical resources and infrastructure.

Project Progress and Outlook

The Red Mountain Lithium Project, staked in August 2023, has shown promising exploration results with 19 drill holes completed to date, intersecting strong lithium mineralisation. Metallurgical testwork has demonstrated high lithium leachability of up to 98%, and beneficiation efforts have successfully upgraded the mineralisation, enhancing the project's economic potential.

However, Venari has announced a delay in completing its maiden Mineral Resource Estimate due to assay lab congestion caused by a surge in critical metals exploration across the US. The resource estimate is now expected by the end of January 2026, a delay that investors will watch closely given its importance in defining the project’s value and development timeline.

Positioning for the Next Phase

With water rights secured, ongoing metallurgical advancements, and an imminent resource estimate, Venari is methodically advancing the Red Mountain Project towards feasibility and potential development. The company’s strategic moves reflect an understanding of the complex challenges in lithium project development, particularly in water-scarce regions, and demonstrate a proactive approach to mitigating those risks.

As the lithium market continues to attract attention amid the global push for electric vehicles and energy storage, Venari’s progress at Red Mountain will be a key story to follow in 2026.