Cornish Metals optionee CLL extends option for a yearNot saying to buy or sell..
2022-01-10 02:40 PT - News Release
Shares issued 283,520,157
CUSN Close 2022-01-07 C$ 0.45
Mr. Richard Williams reports
CORNISH LITHIUM EXTENDS EXPLORATION OPTION FOR A FURTHER 12 MONTHS
Cornish Metals Inc. has received notice from Cornish Lithium Ltd. (CLL) whereby CLL has elected to extend its option to explore the company's mineral rights in Cornwall, United Kingdom, for minerals in brine for a further 12 months.
Under the exploration and option deed entered into by the company and CLL in January, 2017, CLL has chosen to extend the deed for an additional 12-month period in consideration for the issuance to the company of shares in the capital of CLL equal to $100,000 (U.S.) based on CLL's last share issue price. Upon receipt of the shares, the company will own 6,713,940 shares of CLL.
Background:
- Cornish Metals granted CLL an option to explore for minerals in brine and geothermal waters on Cornish Metals' mineral rights in Cornwall, U.K., in January, 2017.
- The company will have a 25-per-cent free carried interest in CLL's first project on the company's mineral rights that has a bankable feasibility study completed on it. Following the bankable feasibility study, the company will be required to contribute its share of development costs or its interest will be diluted.
- The company will have a 10-per-cent free carried interest in each subsequent project developed by CLL on the company's mineral rights that has a bankable feasibility study completed on it. Following the bankable feasibility study, the company will be required to contribute its share of development costs or its interest will be diluted.
- The company will have a 2-per-cent gross revenue royalty payable from any production by CLL of minerals from brines from the company's mineral rights and a 2-per-cent gross revenue royalty payable from any geothermal energy produced by CLL and sold to the National Grid or other system from its mineral rights.
- On each anniversary of the date of the deed for the initial five year period, CLL had the option to extend the deed for a further 12-month period in consideration of the issuance of $50,000 (U.S.) in shares in the capital of CLL to the company.
- Commencing January, 2022, up to and including January, 2026, in the event CLL elects to extend the deed for a subsequent 12-month period, the annual payments to the company will be $100,000 (U.S.) in shares in the capital of CLL.
- CLL can continue to renew the deed after January, 2026, but with a rising option fee.
Richard Williams, chief executive officer, stated: "We welcome Cornish Lithium's decision to continue to explore our mineral rights for lithium in brine, a decision that reaffirms the exploration potential for lithium in a variety of geological environments in Cornwall. We look forward to working with CLL over the coming years to progress the development of the U.K.'s first lithium in brine project."
About Cornish Metals Inc.
Cornish Metals owns a 100-per-cent interest in the South Crofty tin and United Downs copper-tin projects, plus additional mineral rights located in Cornwall, U.K., acquired in July, 2016 (see company news release dated July 12, 2016). The company recently published an updated mineral resource estimate for South Crofty (see news release dated June 9, 2021), as summarized in a table on the company's website. The "South Crofty Tin Project Mineral Resource Update" report, dated June 9, 2021, authored by Nicholas Szebor (CGeol (London), EuroGeol, FGS) of AMC Consultants (U.K.) Ltd., can be accessed on the company's website.
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