Global Battery amendment to North West Leinster LOI
2023-10-11 19:47 ET - Property Agreement
The TSX Venture Exchange has acknowledged receipt of an amended and restated letter of intent dated Aug. 15, 2022, to a binding letter of intent dated Oct. 28, 2018, as amended April 16, 2020, between Global Battery Metals Ltd. and LRH Resources Ltd., a wholly owned subsidiary of Technology Minerals PLC. Pursuant to the terms set forth in the amended and restated letter of intent, the company has three options to acquire up to 90 per cent of the North West Leinster lithium property in the Republic of Ireland.
As consideration, to exercise the first option for the initial 17.5-per-cent interest, the company was required to spend 85,000 euros in expenditures on the property and 6,500 euros on licence fees, both of which have already been spent. For the second option to gain an additional 37.5-per-cent interest, the company must incur 500,000 euros in expenditures within two years, maintaining a semi-annual expenditure of 50,000 euros, and pay LRHR with 50,000 euros, with a minimum cash component of 5,000 euros. For the third option to gain the final 35-per-cent interest, upon notifying LRHR of the second option exercise, the company must spend another 100,000 euros in expenditures within two years (with the same semi-annual obligation) and pay LRHR 200,000 euros, ensuring at least 20,000 euros is in cash.
Upon the company obtaining a 55-per-cent interest through the second option, a joint venture will be established with LRHR, aiming to finalize the agreement within 60 days. If a party's interest drops below 10 per cent, it converts to a 2-per-cent gross smelter return (GSR). The GSR payer has an option to buy back half of the GSR within 12 months for one million euros. The company can use cash or shares for this purchase.
The TSX Venture Exchange has approved the consideration to exercise the second option: issuance of 385,000 common shares to Technology Minerals PLC, as directed by LRHR, at a deemed price of 17 Canadian cents per share; cash payment of 5,000 euros; and incurrence of 500,000 euros on exploration and development of the property.
Any future issuance of shares in connection with the amended and restated letter of intent remains subject to prior exchange approval.
The transaction is arm's length in nature and no finder's fee is payable.
For further details, please refer to TSX Venture Exchange bulletin dated Jan. 21, 2019, and the company's news releases dated Oct. 23, 2018, April 21, 2020, Aug. 19, 2022, and July 13, 2023.
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