Leading Edge Materials reported the initiation of an exploration alliance focused on lithium ion battery materials in Romania. The exploration alliance has highlighted cobalt and lithium opportunities, for which secure tenure is now being sought.
Leading Edge Materials has signed a share purchase agreement with an arm’s length party under which a local company has been incorporated in Romania. Under the terms of the Share Purchase Agreement, Leading Edge Materials will hold an initial 51% interest in the Partnership Company and the right to acquire up to 91% interest by making certain payments in shares of Leading Edge Materials, including an initial payment of 367,006 LEM Shares. Both parties are also working to finalize the terms of a shareholders joint venture agreement. Highlights of the Joint Venture Agreement include:
Payment of 550,509 LEM Shares following the granting of the exploration license within the Exploration Area ;
Payment of 734,012 LEM Shares on completion of a NI 43-101 resource estimate within the Exploration Area;
On completion of a positive Pre-Feasibility Study, Leading Edge Materials shall progress to 91% ownership of the Partnership Company, with the payment of 917,515 LEM Shares;
Leading Edge Materials shall incur all exploration expenditure and shall free carry the local partner to production; and
A bonus payment of up to 1,835,031 LEM Shares should a historic resource of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% be identified within the Exploration Area;
A bonus payment of 2,202,037 LEM Shares should an NI43-101 resource be calculated of greater than 40,000 tonnes of contained cobalt at a cobalt equivalent grade greater than 0.75% within the Exploration Area;
A finder’s fee of 5% is applicable and will also be paid in stages and concurrently with the issuance of the LEM Shares under the Joint Venture Agreement.
Blair Way, President and CEO, stated: “Leading Edge Materials has been actively seeking additional opportunities in the battery materials sector, and we are pleased to accelerate this process through the incorporation of a subsidiary with a skilled local partner. We look forward to providing more details as the exploration alliance progresses”.
Completion of the transaction is subject to customary conditions for transactions of this nature including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.