Lithium Australia NL (ASX: LIT) – $0.245
20 Jun 2016
Lithium Australia NL (ASX: LIT) has completed a strategic consolidation with US Masters Holdings (ASX: USH) over the Lake Johnston lithium pegmatite field approximately 440km east of Perth in Western Australia (Figure 1).
Figure 1. Location of the Lake Johnston lithium pegmatite field
The company will have access to most of the Lake Johnston lithium pegmatite field with lithium rights over US Masters’ granted exploration licences E63/1722 and E63/1723 (Figure 2).
Figure 2. Consolidated project area comprising amalgamated lithium rights for the company
The company holds an uncontested application for E63/1777. US Masters has 100% ownership of granted exploration licences E63/1722 and E63/1723. Highlights from the Agreement include:
- The company will acquire the lithium rights for E63/1722 and E63/1723;
- The company will issue 9 million fully paid ordinary shares (‘Consideration Shares’) to US Masters in consideration for acquiring the lithium rights subject to regulatory approvals.
- 50% of the Consideration Shares will be subject to a voluntary escrow of three months from the date of issue.
- US Masters will acquire the gold and nickel rights for E63/1777 subject to regulatory approvals. The company will be issued 3 million fully paid US Masters’ ordinary shares at the time of transfer.
- Both companies have a first right of refusal regarding the sale of the underlying tenure.
For further information, visit www.lithium.com.au
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