Global Battery Metals Exercises Leinster Option

RNS Number : 9474B

Technology Minerals PLC

06 October 2022

 

The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 

6 October 2022

Technology Minerals Plc  

("Technology Minerals" or the "Company")  

Global Battery Metals Exercises Leinster Property Option

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on creating a sustainable circular economy for battery metals, is pleased to announce that Global Battery Metals Ltd ("GBML"), (TSXV: GBML; OTCQB: REZZF; Frankfurt: REZ), an international critical mineral exploration and development company focused on growth-oriented battery metal projects, has elected to exercise its first option with respect to the Company's lithium North-West Leinster Property in the Republic of Ireland ("the Property").

The Leinster Property is currently operated as an Earn-in Option between LRH Resources Limited (Ireland) ("LRH") (a wholly-owned subsidiary of the Company) and GBML. The project is operated under an exclusive Earn-in and option agreement with GBML with no project expenditure required by the Company.

The agreement provides GBML with three staged options to acquire up to 90% of the Property as follows:

· First Option: to earn 17.5% equity by spending on the Property by 12 October 2022:

o  (i) up to €85,000 (already spent) in expenditures on the Property, separate from the license fees

o  (ii) up to €6,500 (already spent) in connection with all such license charges, fees and rents as may be required to keep the Property in good standing

· Second Option: to earn a further 37.5% equity by spending a further €500,000 (with credit given for overspend by GBML prior to 12 October 2022) within two years of the exercise of the 1st Option, and paying the Company €50,000 (i) in cash or (ii) GBML shares at market price and €5,000 in cash

· Third Option: If Option 2 is exercised, to earn a further 35% equity by spending a further €1,000,000 within two years of the exercise of the 2nd Option, and paying the Company €200,000 (i) in cash or (ii) GBML shares at market price and €20,000 in cash.

· GBML is required to maintain the applicable Option in good standing, and when GBML reaches 55% interest, pursuant to the terms of the Second Option, a joint venture between the Company and GBML will be formed.  The joint venture terms include:

(i) each party having a right of first refusal on the other party's shares;

(ii) each party having tag along rights in the event a party seeks to sell its shares (and the other party does not exercise its right of first refusal); and

(iii) each party's interest shall convert to a 2% gross smelter royalty (the "GSR") if its interest dilutes below 10%. The royalty payor of the GSR has a buy back right on one half of the GSR exercisable within a period of 12 months after its grant for an acquisition price of €1,000,000 payable in cash or GBML shares at market price.

The Leinster Property

The Leinster Property, located in the counties of Wicklow and Dublin, is focused on the exploration for lithium mineralisation within spodumene-bearing granite pegmatites.  The Property consists of fifteen prospecting licences, termed 'the North-west Leinster Block', which cover a total area of approximately 477km², and a new Prospecting Licence ("PL"), PL1597 which was awarded on 22 March 2022. All the Property prospecting licences were granted to LRH.

The Property lies on a 135km long zone of lithium-bearing pegmatites, centred on the Aclare and Moylisha deposits which were discovered during 1960's and 1970's and are currently being explored by the Ganfeng - International Lithium joint venture.

Lithium mineralization on the Property has been confirmed, with spodumene bearing samples from various prospects identified within the project area: Sorrel (1.6% Li₂O equivalent); Tonygarrow (1.0% Li₂O); Aghavannagh (1.78% Li₂O). Lithium mineralization on PL1597 has also been confirmed, with spodumene bearing samples from two boulder trains identified, the results of which will be released in the near future.

The Company and GBML plan further work programmes on the Property (including PL1597) in Q4 2022, with geological mapping, lithogeochemical sampling, ground surveying, deep overburden sampling and limited diamond drilling where warranted.

As part of an on-going workflow, the Company continues to identify, fully assess and apply for other spodumene-pegmatite exploration opportunities along the district-scale Irish lithium belt.

Alex Stanbury, CEO of Technology Minerals, said:  "I am pleased that Global Battery Metals will be exercising their first option at the Leinster Property. This news demonstrates the strength of our working relationship with Global Battery Metals and underlines their faith in the potential of this project and the Irish pegmatite belt.

"It also vindicates our strategy to move early-stage mining assets up the value chain and shows the value of Technology Minerals exploration work. We look forward to continuing to work closely with Global Battery Metals, as well as our other joint venture partners, to develop our portfolio of projects focused on the critical minerals needed to power the transition to net zero."

Enquiries

Technology Minerals Plc
Robin Brundle, Executive Chairman Alexander Stanbury, Chief Executive Officer	[phone]
Global Battery Metals Ltd.
Michael Murphy BA, MBA, MSc., ICD, President & CEO	[phone]
Arden Partners Plc
Ruari McGirr, George Morgan	[phone]
Gracechurch Group
Harry Chathli, Alexis Gore, Amy Stupavsky	[phone]

Technology Minerals Plc  

Technology Minerals is developing the UK's first listed, sustainable circular economy for battery metals, using cutting-edge technology to recycle, recover, and re-use battery technologies for a renewable energy future. Technology Minerals is focused on extracting raw materials required for Li-ion batteries, whilst solving the ecological issue of spent Li-ion batteries, by recycling them for re-use by battery manufacturers. With the increasing global demand for battery metals to supply electrification, the group will explore, mine, and recycle metals from spent batteries. Further information on Technology Minerals is available at www.technologyminerals.co.uk    

 

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