General Mining Corporation Limited (ASX: GMM) – $0.057
09 Jun 2015
General Mining Corporation Limited (ASX: GMM) is set to acquire 50% of the Mt Cattlin Lithium Project located in Ravensthorpe, Western Australia for a total consideration of $25.0 million.
The company also has the right to earn 50% of the James Bay Lithium Project located in Quebec, Canada.
The company will be entering into a long term partnership with Galaxy Resources Limited (ASX: GXY). Highlights from the amended transaction structure includes:
- The company will initially acquire a 50% deemed operating profit interest in the Project by spending $7.0 million on the Project prior to commencement of production (on or before 31 March 2016). The company’s equity interest will commence at 14% upon making that expenditure.
- Balance of consideration to be paid in three $6.0 million instalments due annually from the commencement of production. The company’s equity interest will increase by 12% upon payment of each instalment.
- The company has the right to acquire its 50% share early (at its sole discretion) by making full payment at any time in the first three years.
The Mt Cattlin Project has an estimated Total Resource of 12.8Mt at 1.09% Li2O, 163ppm Ta2O5, 87ppm Nb2O5 and an estimated Total Reserve of 10.7Mt at 1.04% Li2O, 146ppm Ta2O5.
The James Bay Project has an estimated Total Resource of 22.2Mt at 1.28% Li2O.
For further information, visit www.generalmining.com
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