The transaction will realise $1.6M in cash & shares + $1.5M cash linked to milestones for Essential, reinforcing its focus on the Pioneer Dome Lithium Project in WA
HIGHLIGHTS
• Essential Metals Limited (“Essential”) and International Lithium Corporation
(“ILC”), Joint Venture partners in the Mavis Lake Lithium Project in Ontario,
Canada (the “Project”), have agreed to divest 100% of the Project to Critical
Resources Limited (ASX: CRR “Critical Resources”) under an Option Agreement.
Critical Resources will pay $175,000 for the right to acquire 100% of the Project,
exercisable by 4 January 2022. Upon electing to acquire the Project, Critical
Resources will pay/issue the following, with Essential and ILC will sharing the
proceeds equally:
o $1,500,000 cash; and
o 68 million shares in Critical Resources at a price of $0.022 per share (with
a deemed value of $1.5 million).
In addition, milestone payments totalling $3 million will be payable on the
definition of a lithium resource (refer below for further information).
• Essential is taking advantage of the current strong sentiment in the lithium
sector to divest a non-core, early-stage exploration asset located in Canada,
consistent with its focus on its WA lithium and gold projects.