ASX-listed Mineral Resources enters earn-in on New Age Metals’ lithium projects in Manitoba
(Kitco News) - New Age Metals (TSX.V: NAM) announced today that it has entered into a binding term sheet with an Australian lithium and iron ore producer Mineral Resources Limited (MRL), pursuant to which MRL can earn up to a 75% interest in NAM's Manitoba lithium division.
In a statement, NAM said that MRL has the right to acquire an initial 51% interest by completing C$4,000,000 of exploration and development activities and C$400,000 in cash payments within 42 months from the effective date.
MRL can earn an additional 14% interest (65%) by completing a NI 43-101 compliant mineral resource estimate and pre-feasibility study on developing a spodumene concentrate operation at one or more of NAM's projects. MRL can earn an additional 10% interest (75%) by funding the project to the point of a final construction decision made by MRL.
NAM indicated that its Lithium Division is one of the largest mineral claim holders in the Winnipeg River Pegmatite Field, where the company is exploring for hard-rock lithium and various rare elements, such as tantalum and rubidium.
Chairman & CEO Harry Barr commented, "The stated mandate for our lithium division since acquisition of our projects was to secure a strategic partner with exploration, development, and production expertise, and this agreement with Mineral Resources Ltd fulfills our objective. Mineral Resources is one of the world's largest lithium producers with a current market capitalization of approximately A$9 billion.”
"This is a strategic transaction for New Age shareholders as it provides both, a non-dilutive financing for the development of our substantial lithium division through a partnership with one of the world's largest producers and the flexibility to finance our share of the projects through various methods,” he added.