Birimian in $107 million lithium deal with Shandong Mingrui
The LOI is subject to a number of conditions, including receipt of a deposit of $AUD 10.75M on or before January 20, 2017, at which point the LOI becomes binding.
Subject to receipt of this deposit, the company will take this transaction to shareholders for approval at a general meeting to be arranged and advised in due course.
Ongoing Program and Evaluation Studies Located in southern Mali, the 100%-owned Bougouni Lithium Project hosts the Goulamina lithium deposit.
The Mineral Resource at Goulamina is 15.5Mt at 1.48% Li2O for 229,000 tonnes contained Li2O. Birimian has formulated a clear and well defined pathway for the potential development of the Bougouni Project.
On-the-ground evaluation studies and drilling will continue pending completion of the proposed transaction. The second phase, 10,000 metre drilling program at Goulamina remains on track for completion by late-January 2017 alongside initial assay results.
The current schedule provides for an updated resource estimate later in the March Quarter, leading to the Pre-Feasibility Study and maiden reserve reporting in the June Quarter.
Offer and Transaction Details Birimian and Mingrui (the Parties) have entered into a binding Letter of Intent, subject to conditions, to sell and transfer a 100% interest in Birimian’s Torakoro Permit to Mingrui for total consideration consisting of $AUD 107,500,000 in cash (plus any applicable taxes). The Torakoro Permit hosts the Goulamina Deposit.
Mingrui will pay a cash deposit of $AUD 10,750,000 (Deposit) to an Australian solicitor's interest bearing account to be held in trust in accordance with the terms of the LOI (Stakeholder Account).
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