PERTH (miningweekly.com) – ASX-listed Hawkstone Mining has resurrected a transaction to acquire lithium projects in the US and Mexico.
The company earlier this month withdrew from a March option over USA Lithium, which holds the Big Sandy and Lordsburg lithium projects, in Arizona and Mexico, respectively, after it failed to reach an agreement with USA Lithium on amendments to the transaction.
However, Hawkstone on Tuesday told shareholders that a new revised agreement had been executed with USA Lithium.
Under the terms of the new agreement, Hawkstone would acquire all of the shares of USA Lithium in exchange for 250-million shares. The first half of the shares will be issued at the completion of the transaction, with the issue of the remaining shares subject to Hawkstone declaring an inferred resource of no less than 30-million tonnes, at grades greater than 2 000 parts per million at the Big Sandy project, within 36 months of the transaction.
The issue of the second batch of shares was also subject to the ASX granting a waiver for the issue of the deferred consideration shares.
Following shareholder approval, Hawkstone will also transfer A$250 000 to USA Lithium.
“Hawkstone is extremely pleased to have been able to agree revised terms for the acquisition of USA Lithium and looks forward to rapidly advancing the exploration programme at Big Sandy and Lordsburg,” said Hawkstone director Oonagh Malone.
“The board considers the revised terms significantly de-risk the acquisition for Hawkstone shareholders as 50% of the consideration is now contingent on the announcement of a 30-million-tonne inferred resource at Big Sandy.”
The acquisition is subject to a number of conditions, including Hawkstone conducting a capital raise of up to A$2.75-million through a share placement priced at 2c each, as well as shareholder and regulatory approvals.