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- Global Lithium Resources Limited (GL1) has completed the purchase of an 80 per cent stake in the Manna Lithium Project from Breaker Resources NL (BRB)
- The acquisition that was announced last Thursday, comprised a total consideration of up to $33 million, to be made up of $13 million upfront and up to $20 million deferred
- Global Lithium will fund all exploration and technical research until a definitive bankable feasibility study is completed within five years
- If Global Lithium does not meet this goal, its equity will revert to a 50/50 joint venture arrangement
- Shares in GL1 last traded at 86.5 cents while Breaker shares last traded at 28.5 cents, both on December 30
Global Lithium Resources Limited (GL1) has completed the purchase of an 80 per cent stake in the Manna Lithium Project from Breaker Resources (BRB).
The acquisition that was announced last Thursday, comprised a total consideration of up to $33 million, to be made up of $13 million upfront and up to $20 million deferred.
The upfront payment consists of $6.5 million in cash and $6.5 million in GL1 shares.
Global Lithium will pay Breaker a further $10 million payable on the definition of a
Mineral Resource containing more than 250,000 tonnes of contained lithium oxide, and a further $10 million upon the production of 100,000 tonnes of contained lithium oxide.
Global Lithium will fund all exploration and technical research until a definitive bankable feasibility study is completed within five years. If Global Lithium does not meet this goal, its equity will revert to a 50/50 joint venture arrangement.
The Manna Lithium Project is an outcropping pegmatite exploration project in Western Australia, about 100 kilometres east of Kalgoorlie.
The Project has a 750m x 130m impact area in the main outcrop, with individual pegmatite dykes up to 18 metres wide.
A new zone of spodumene-rich pegmatites has been discovered by drilling over an anomalous 350-metre region to the south of Manna 1.
Global Lithium Chair Warrick Hazeldine said the acquisition is a great way to round of the year.
“We believe the Manna Lithium Project suits our skill set and strategy. We are looking forward to getting ‘boots on ground’ early in the New Year in parallel to commencing our 2022 drilling campaign at the Marble Bar Lithium Project,” he said.
Breaker Chairman Peter Cook said the deal will allow the company to up the ante at its flagship Lake Roe Gold Project without the requirement to raise dilutive capital.
“The upfront cash, milestone payments, and free carried interest to bankable feasibility with ongoing upside exposure through its retained 20% interest is a balanced outcome,” he said.
“Shareholders can look forward to 2022 as we demonstrate the commercial significance of our 1.7 million ounces Lake Roe Resource. This will be topped off by further growth in our high-grade Bombora Deeps targets and the excellent Lithium results we expect will emerge from Manna.”
Shares in GL1 last traded at 86.5 cents while Breaker shares last traded at 28.5 cents, both on December 30.
