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Iconic Announces Grant of Option for Smith Creek Lithium Project, Nevada
Vancouver, British Columbia--(Newsfile Corp. - November 28, 2022) - Iconic Minerals Ltd. (T...
About this update from Iconic Minerals Ltd
[{"type":"text","content":"Iconic Announces Grant of Option for Smith Creek Lithium Project, NevadaVancouver, British Columbia--(Newsfile Corp. - November 28, 2022) - Iconic Minerals Ltd. (TSXV: ICM) (OTCQB: BVTEF) (FSE: YQGB) (the \"Company\" or \"Iconic\") announces that it has entered into a binding term sheet (the \"Term Sheet\") with Lithium of Nevada Pty Ltd (\"LON\"), a private Australian company, whereby Iconic's wholly-owned Nevada subsidiary (\"Iconic Subco\") has granted to LON the option (the \"Option\") to earn up to a 50% interest in the Company's Smith Creek lithium project (the \"Smith Creek Project\" or the \"Project\") located 37 miles southwest of Austin, Nevada (the \"Transaction\"). The Term Sheet provides that the parties will now proceed with the negotiation of a definitive agreement for the Transaction (the \"Definitive Agreement\").Iconic Minerals Ltd CEO, Richard Kern, comments: \"We look forward to working with our new joint venture partner to explore this very attractive Lithium project.\"Earn-In TermsLON can exercise the Option by making cash earn-in payments to Iconic in the aggregate amount of USD $5,600,000 (the \"Earn-In Payments\") of which Iconic has received a non refundable deposit of USD $200,000 which will be credited against the first Earn-In Payment. The Earn-In Payments will be used to fund work programs on the Project during the term of the Option and will be payable as follows:DateEarn-In Payments (USD)On or before December 19, 2022 or as agreed by the parties$1,750,000On or before May 31, 2023 or as agreed by the parties$1,250,000On or before June 30, 2023 or as agreed by the parties$1,500,000On or before September 30, 2023 or as agreed by the parties$1,100,000TOTAL:$5,600,000 Upon the completion of all Earn-In Payments, LON will have earned a 50% interest in the Project (subject to the existing net smelter returns royalty on the Project) and Iconic and LON will be deemed to have formed a joint venture (the \"Joint Venture\") for the purpose of exploring, developing and, if warranted, commercialization of the Project, in respect of which the initial participating interests of the parties will be, Iconic as to 50% and LON as to 50%. If and when the parties form the Joint Venture, the provisions of the agreement governing the Joint Venture will be negotiated and settled by the parties and will provide, among...