Australia-based Global Uranium on Monday announced the sale of its Lake Johnston lithium project, in Western Australia, to Intra Energy Corporation (IEC), as the company shifts its focus to building size and scale in the North American uranium industry.
Global will sell its 80% interest in Lake Johnston for up to A$2.125-million, including A$175 000 in cash and the issue of 30-million shares at completion of the sale. The remaining deferred consideration will be issued in shares or paid in cash subject to certain milestones.
Global will retain a 20% interest in Lake Johnston and will be granted a 1% gross revenue royalty.
Global intends on using the initial cash consideration towards ongoing exploration and development of its North American uranium assets, said MD Andrew Ferrier.
“This is an excellent transaction for Global Uranium and our shareholders, as we can continue to focus on developing our advanced, high-quality North American uranium portfolio, while maintaining upside exposure to the Lake Johnston project,” said Ferrier.
He described Lake Johnson as an “exciting asset, located in a proven lithium region”.
IEC, which refers to the project as Maggie Hays Hill (MHH) in the Lake Johnston region notes that the project is about 25 km north of two separate spodumene lithium discoveries at TG Metals’ Burmesiter Hill and Charger Minerals’ Lake Medcalf.
Recently, Rio Tinto has farmed into the Charger Minerals tenements in the region, and in a related transaction, Charger Minerals has acquired all of Lithium Australia’s interests in their joint venture tenements.
“The acquisition of the MHH project opens the exciting opportunity to IEC for advanced exploration for lithium, gold, and nickel in the well-known Maggie Hays Hill area of southern Western Australia. Initial work done by IEC and historical exploration has identified visible outcropping pegmatites with recently discovered spodumene deposits to the south providing potential for lithium,” said IEC chairperson Graeme Robertson.