- Global Lithium Resources Limited (ASX:GL1) has agreed to acquire an interest in the Manna Lithium Project from Breaker Resources NL
- The agreement is for up to $33 million total consideration, comprising $13 million upfront and up to $20 million deferred
- Global Lithium, through its wholly owned subsidiary GLR Australia Pty Ltd, will acquire an 80 per cent interest in the exploration, future mining, and associated co-mineral rights
- Global Lithium Resources Limited (GL1) last traded at $0.63 per share before market open on December 23
Global Lithium Resources Limited (ASX:GL1) has entered an agreement to acquire an interest in the Manna Lithium Project east of Kalgoorlie from Breaker Resources NL (ASX:BRB).
The agreement is for an 80 per cent interest, with total consideration of up to $33 million, comprised of $13 million upfront and up to $20 million deferred.
Global Lithium will acquire its stake in the exploration, future mining and associated co-mineral right, through its wholly owned subsidiary GLR Australia Pty Ltd.
Manna is a recent virgin discovery of spodumene within outcropping pegmatites within Breaker’s land holdings proximal to its Lake Roe Gold Project.
The initial payment is in the form of $6.5 million cash and an equivalent amount paid as shares.
The upfront consideration is payable by 31 December 2021.
The shares will be issued pursuant to Global Lithium’s existing placement capacity.
Shareholder approval is not required for the transaction.
As part of the deal, Breaker has granted Global Lithium a first and last rights of refusal in respect of any proposed sale or farm-out opportunity.
The full form documents contain other customary provisions for an arrangement of this nature.
This includes representations and warranties, the apportionment of expenditure between the parties, maintenance of key assets, rehabilitation costs and, in respect of the joint venture, pre-emptive rights, dilution mechanisms for failure to contribute, and the key decision-making framework.