Business
Usha Resources Congratulates Stardust Power on NASDAQ Listing, Provides Update on LOI to Sell Up to 90% of the Jackpot Lake Project for Total Consideration of up to US$26,025,000
VANCOUVER, BC, July 26, 2024 /CNW/ -- Usha Resources Ltd. ("USHA" or the "Company") (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American exploration company
About this update from Usha Resources Ltd
[{"type":"text","content":" VANCOUVER, BC, July 26, 2024 /CNW/ -- Usha Resources Ltd. (\"USHA\" or the \"Company\") (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American exploration company, congratulates Stardust Power, Inc. (\"Stardust Power\", \"SDST\" and \"SDSTW\") on the completion of its business combination with Global Partner Acquisition Corp II and the listing of its shares of Class A common stock on the Nasdaq Global Market (\"Nasdaq\"). Usha entered into a Letter of Intent (the \"LOI\") with Stardust Power dated March 15, 2024 granting Stardust Power the right to earn up to a 90% interest subject to a 2% Net Smelter Royalty (\"NSR\") in Usha's Jackpot Lake Lithium Brine Project (\"Jackpot Lake\" or the \"Project\") for total consideration of US$26,025,000 over five years. A non-refundable sum of US$75,000 has been paid to Usha by Stardust Power pursuant to the LOI. Stardust Power's listing on the NASDAQ is a necessary condition for the execution of definitive agreements (the \"Definitive Agreement\") pursuant to the LOI. Upon completion of the full earn-in of US$26,025,000, which comprises payments totaling US$1,525,000 cash, US$750,000 stock, US$15,750,000 stock or cash at Stardust Power's election, and a work commitment of US$8,000,000, Usha would retain 10% of the Project and a 2% NSR and would be carried in the Joint Venture (\"JV\") formed between Usha and Stardust Power until a formal Decision to Mine is reached following completion of a Feasibility Study. Stardust would be permitted to buy back 1% NSR for a cash payment of US$7,500,000. Deepak Varshney, CEO of Usha commented: \"We congratulate Stardust Power on its listing and its subsequent success which demonstrates the strength of their value proposition.\" Mr. Varshney continued: \"Our strategic vision at Usha has always been to acquire and monetize undervalued assets. With the recent acquisition of the Southern Arm Copper-Gold VMS Project from Abitibi Metals, our focus will now shift towards copper and other critical metals. With working capital of approximately $1.2M, Usha is in a strong financial position to execute over the coming year and we look forward to our maiden drill program at Southern Arm, particularly at \"Hollywood\", which has a ~1.8 km footprint that is open along strike.\" Stardust Power is developing a lithium refinery facility i...