Osmond Resources and 5E Advanced Materials Inc. have entered into a Deed of Assignment and Assumption Agreement, allowing Osmond to assume its exclusive earn-in rights to earn-in and acquire the Salt Wells lithium-borate Project.
According to Osmond, the acquisition is designed to complement its existing projects and remains in line with its objective of pursuing new business developments while maintaining its current portfolio.
The agreement framework allows for all expenditures to go directly towards exploration and testing, with no outgoing cash or shares as part of the acquisition and the ability to withdraw assuming obligations at any time.
It also includes a modest earn-in expenditure that will maintain Osmond’s cash holdings earmarked for existing projects.
Following the agreement, Osmond plans to undertake an initial assessment of existing geophysical and geochemical data over the project to design and initiate an exploration program, with potential drilling targetted to commence in the second half of 2023.
The company is also looking to raise approximately $2.3 million by way of a non-renounceable rights issue to fund the exploration of the Salt Wells Project.
Osmond Executive Director Andrew Shearer said the company is planning to assess existing exploration results, which will shape an exploration plan, with the target to start ground activities and a maiden drilling program by the second half of the year.
“In the context of the opportunity to be a part of the transition to new clean energy economies, the acquisition of the Salt Wells lithium-borate Project offers a tremendous prospect for all Osmond shareholders,” Shearer added.
