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New Age Metals Signs Binding Agreement with Mineral Resources Limited, a Major Australian Lithium Producer, on Its Manitoba Lithium Division
Rockport, Ontario--(Newsfile Corp. - September 28, 2021) - New Age Metals Inc. (TSXV: NAM) (OT...
About this update from New Age Metals Inc
[{"type":"text","content":"New Age Metals Signs Binding Agreement with Mineral Resources Limited, a Major Australian Lithium Producer, on Its Manitoba Lithium DivisionRockport, Ontario--(Newsfile Corp. - September 28, 2021) - New Age Metals Inc. (TSXV: NAM) (OTCQB: NMTLF) (FSE: P7J2) (\"NAM\" or \"Company\") is pleased to announce that it has entered into a binding term sheet with a wholly owned subsidiary of Australian lithium and iron ore producer, Mineral Resources Limited (MRL). Under the terms, MRL can earn up to a 75% interest in NAM's Manitoba lithium division.NAM enters into a legally binding term sheet with MRL with respect to NAM's Manitoba lithium projectsMRL has the right to acquire an initial 51% interest by completing C$4,000,000 of exploration and development activities and C$400,000 in cash payments within 42 months from the Effective DateMRL can earn an additional 14% interest (65%) by completing a NI 43-101 compliant mineral resource estimate and Pre-Feasibility Study on developing a spodumene concentrate operation at one or more of NAM's ProjectsMRL can earn an additional 10% interest (75%) by funding the Project to the point of a final construction decision made by MRL NAM shall have the option to complete an initial public offering of NAM's joint venture interest or spinning out NAM's minority joint venture interest into a public vehicle holding such minority joint venture interestNAM intends to complete a maiden drill program on its Lithium Two Project in October 2021. Lithium Two hosts a historic non-NI 43-101 compliant mineral resource of 544,000 tonnes at 1.4% Li2OHarry Barr, Chairman & CEO commented: \"The stated mandate for our lithium division since acquisition of our projects was to secure a strategic partner with exploration, development, and production expertise, and this agreement with Mineral Resources Ltd fulfills our objective. Mineral Resources is one of the worlds largest lithium producers with a current market capitalization of approximately A$9 billion. This agreement comes at an opportune time in the market where North American lithium demand is high and there is a growing need to introduce local supply to meet that demand. Manitoba is an underexplored region in North America for lithium and rare elements. This is a strategic transaction for New Age shareholders as it provides both, a non-dilutive financing for ...