Australia-listed MetalsTech has announced a binding agreement for an $18-million deal with battery metals investor Lithium Royalty Corp (LRC) relating to its portfolio of lithium assets in the James Bay Region of Quebec, Canada.
The deal provides MetalsTech with a cash injection and its shareholders with an in-specie distribution of free shares in the proposed spinout of its lithium assets through a separate ASX listing of Winsome Resources.
The deal includes a $6-million cash payment by LRC to MetalsTech in consideration for a 3% gross revenue royalty over the Cancet, Adina and Sirmac-Clapier lithium assets, the funds of which will be used to advance activities at its flagship gold mining project in Slovakia.
Through the spinout of the lithium assets, MetalsTech will receive $9-million shares in Winsome, equating to 45-million shares.
LRC has also agreed to be a cornerstone investor in the Winsome initial public offering with a $3-million investment.
MetalsTech’s shares ended the day higher on the news, closing 22% up at A$0.16 a share.