Mandrake Identifies 1.5% Tenure Overlap with Utah Brine Corporation at Utah Lithium Project

Tenure Dispute Emerges on Utah Lithium Project

Mandrake Resources (ASX:MAN) is facing a legal challenge over its prized Utah Lithium Project after Utah Brine Corporation (UBC), associated with Neometals Ltd (ASX:NMT) and Omaha Value Inc., staked placer claims overlapping Mandrake’s senior tenure. The dispute concerns roughly 1.5% of Mandrake’s extensive 93,000-acre lithium brine asset, which hosts an inferred mineral resource estimated at 3.3 million tonnes of lithium carbonate equivalent (LCE).

Mandrake asserts that UBC’s claims were lodged on ground not open for location and are therefore invalid. The company’s US legal representatives have demanded UBC file formal notices of abandonment for the overlapping claims and cease any mineral exploration or development activities on Mandrake’s tenure. This firm stance underscores the strategic importance Mandrake places on securing undisputed control over its lithium resource.

Strategic Implications of the Overlapping Claims

The overlap involves unpatented placer claims, a form of mining tenure that can complicate ownership in federal lands like those in Utah. Mandrake’s legal correspondence to UBC and Neometals insists on immediate abandonment of the disputed claims and prohibits entry onto the contested ground. This legal wrangling adds a layer of uncertainty to the project’s development timeline and could influence investor sentiment.

Neometals’ involvement is particularly notable given its recent binding agreement to increase its stake in UBC to 51% through its subsidiary Neometals Energy Pty Ltd. This partnership, announced in March 2026, ties Neometals directly to the contested claims. Mandrake’s efforts to resolve the dispute amicably with Neometals management have so far been unsuccessful, prompting legal action.

Mandrake’s Utah Lithium Project is positioned within a pro-mining jurisdiction with access to Tier 1 infrastructure and benefits from US government initiatives to boost domestic critical mineral supply chains. The company has previously secured substantial federal funding and strategic partnerships to advance exploration and development, including a US$1 million grant from the Department of Energy to characterise lithium brines in the Paradox Basin. This background highlights the project’s high profile and strategic value, making the tenure dispute all the more significant in the context of US efforts to secure lithium supply chains US$1 million federal funding.

Next Steps and Market Watch

Mandrake has received recent legal correspondence from UBC’s representatives concerning the claims and related oil and gas well operatorship within the project area. The company is reviewing these documents and plans to provide further updates. Investors will be watching closely for how the dispute unfolds, as any prolonged uncertainty could affect project valuation and timelines.

While the disputed claims represent a small fraction of the overall tenure, the outcome could set precedents for claim validity and operational control in this strategic lithium basin. Mandrake’s assertive legal approach aims to safeguard its position amid increasing competition for lithium assets in the US, a market seeing heightened activity from both domestic and international players.