Lithium producer enters Transfer Agreements to acquire two neighbouring exclusive prospecting licenses
Lithium developer and lithium concentrate producer Desert Lion Energy announced this week that it has entered definitive Transfer Agreements for the acquisition of Exclusive Prospecting License 5555 and 5718, both located adjacent to its existing Exclusive Prospecting Licenses where the Rubicon and Helikon lithium mines are located.
In separate Transfer Agreements, Desert Lion has agreed to pay aggregate consideration of approximately C$180,000 for each of EPL 5555 and EPL 5718, of which C$30,000 was paid in cash on execution of the respective Transfer Agreement.
An additional cash payment of approximately C$100,000 will be paid on closing of each transaction and Desert Lion will issue the respective vendors, in aggregate, a number of common shares of Desert Lion equal to C$50,000 and at a price per share equal to the closing price of Desert Lion’s common shares on the TSX Venture Exchange on the day immediately prior to closing.
Both EPLs are largely underexplored with respect to lithium mineralization, and contain host Pan African age (500Ma) syn and post tectonic granites that are considered to be the source of LCT type pegmatites.
According to Desert Lion, upon closing of the Proposed Transaction, the Company’s ground holding in Namibia will cover a total of 1,054km2.
Meanwhile, closing of the Proposed Transaction is subject to receipt of approval of the transfer of the EPL’s to Desert Lion by the Namibian Ministry of Mines and Energy as well as any required regulatory approvals, including the TSX Venture Exchange.
“We are excited to have acquired EPL 5555 and 5718,” said Tim Johnston, president and CEO of Desert Lion Energy Inc. “These EPLs represent significant optionality for our organic growth profile, which we plan on testing as we move forward with our 2018 exploration programme.”