Lithium Australia (LIT) has acquired exploration rights for lithium on two U.S. Masters Holdings (USH) licenses (E63/1723 and E63/1722) in the Lake Johnson pegmatite field.
USH was granted the above mentioned tenements in Western Australia earlier this year and has sought partners to explore the ground, consistent with its status as an investment entity.
Those discussions have resulted into an agreement with Lithium Australia which will see Lithium issue 9 million fully paid ordinary shares to UHS in consideration for acquiring the lithium right to the tenements.
USH said 50% of the consideration shares will be subject to a voluntary escrow of three months from the date of the issue.
Under the terms of the agreement, USH will acquire the gold and nickel rights over LIT’s tenement (E63/1777) for consideration of 3 million fully paid USH ordinary shares at the time of the transfer of these rights to USH.
In addition, the two parties have agreed upon a reciprocal first right of refusal in regard to the sale of the underlying tenure of the tenements.
“It is expected that USH will be issued with the 9 million fully paid ordinary shares in LIT prior to the end of July 2016. Settlement of the gold and nickel rights in E63/1777 is dependent on the timing of the granting of the tenement, which is expected to be prior to year end,” USH Managing Director Michael Davies told the ASX on Monday.
“Based on the closing price of LIT’s fully paid ordinary shares in the ASX on Friday 17th June 2016 of A$0.245 this values the Consideration Shares at A$2.205 million. USH’s book value of the Tenements is zero and no value has been ascribed to these Tenements in USH’s monthly NTA calculations.”
