Business
Royalty Agreement with Lithium Royalty Corporation
Royalty Agreement with Lithium Royalty Corporation.
About this update from Bradda Head Lithium Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 3077S\n Bradda Head Lithium Ltd\n 15 November 2021\n \n \n \n 15 November 2021\n Bradda Head Lithium Ltd.\n (\"Bradda Head\", \"Bradda\", or the \"Company\")\n Royalty Agreement with Lithium Royalty Corporation\n \n Bradda Head Lithium Ltd. (AIM: BHL), the North America-focused lithium development group, announces that it has entered into a binding letter of intent (the \"LOI\") in connection with a proposed royalty agreement between the Company and Lithium Royalty Corporation (LRC) for a 2% Gross Overriding Royalty (GOR) over its sedimentary lithium claims in Central Arizona; the LOI contains the agreed commercial terms of the proposed royalty agreement, completion of which is subject to the satisfaction of certain conditions precedent, including satisfactory due diligence (\"DD\") and a site visit from LRC.\n \n \n Highlights:\n \n · Total value of the royalty with LRC is US$8 million and will allow for a 2% GOR over only Bradda Head's sedimentary lithium claims in Arizona. Leaving the pegmatite and brine projects unencumbered.\n \n · Royalty value will be paid to Bradda Head at three predetermined milestones.\n \n · LRC will also invest US$2 million via a private placement alongside the royalty closing, at the 10-day volume-weighted average price (VWAP) prior to the signing of the LOI.\n \n · Funds from the royalty will be used to develop Bradda's 47km2 of sedimentary claims in Arizona\n \n · DD is scheduled to be completed by the 3rd of December and the Royalty Agreement to be signed by the 21st of December.\n \n Subject to due diligence, Bradda Head will enter into a royalty agreement with LRC for a 2% GOR, totalling US$8 million, with payments scheduled upon completion of the three following milestones:\n \n \n · US$2.5 million on Closing\n \n · US$2.5 million once Bradda Head has obtained a 1 million tonne (Mt) lithium carbonate equivalent (LCE) resource with a minimum lithium grade of 800 parts per million (ppm)\n \n · US$3 million once Bradda Head has obtained a 2.5Mt LCE resource with a minimum lithium grade of 800 parts per million (ppm)\n \n LRC will also invest an additional US$2 million as a private placement on Closing, at the 10-day VWAP (7.7p) prior to the signing of the LOI (12 November 2021 at market close).\n \n Charles FitzRoy, CEO of Bradda ...