Lithium Energy (ASX:LEL) signed binding acquisition agreements to consolidate contiguous granted and application stage exploration permits in Queensland forming the Capricorn project, according to a Friday filing with the Australian bourse.

The acquisition involves a cash consideration of AU$3 million, contingent payments of up to AU$2.5 million, and a 2% net smelter return royalty, with a partial buy-back option, the filing said.

The company also committed to a minimum exploration and evaluation expenditure of AU$4 million within two years, according to the filing.