Advanced Australian lithium developer Core Lithium (ASX: CXO) has announced that it will make the the final $1.5 million cash payment to Liontown Resources Limited (ASX: LTR) for the purchase of the Bynoe Lithium Project in the Northern Territory before 14 July 2020.
$1.5m contingent and final consideration payable to Liontown for 100% purchase of Bynoe Lithium Project.
Bynoe Acquisition has contributed significantly to Core’s recently announced:
Mineral Resource Estimate of 15Mt @ 1.3% Li2O;
7-year LOM backed by Ore Reserve.
Bynoe deal also provided 100% access and rights to Greenbushes process water dam.
Excellent value achieved from the deal for Core.
Core is very pleased with the value realised from the Bynoe Acquisition to date, leading to the Company’s recent announcements of Project Resources of 15Mt @ 1.3% Li2O and Ore Reserves supporting a 7-year life of mine (LOM).
Mineral Resources defined by Core on the Bynoe Project subsequent to Bynoe Acquisition have included BP33, Carlton, Hang Gong, Booths, Lees and Sandras.
In addition to these Mineral Resources, the Bynoe Acquisition has also provided Core access to the large process water dam established by Greenbushes in the 1980’s – key to Core’s plans to develop and potentially expand production from its flagship Finniss Lithium Project in the future.
The terms of the Bynoe Acquisition sale and purchase agreement (Agreement) were summarised in the Company’s announcement of 14 September 2017. Pursuant to the Agreement, Core was required to pay to Liontown $1.5 million (in cash or shares, at Core’s election) within 30 days of Core declaring a Mineral Resource estimate of 5 million tonnes (whether Inferred, Indicated or Measured) in relation to the tenements sold under the Agreement.
The contingent consideration milestone was met by Core with the recent announcement of “Finniss Lithium Resource increased by over 50%” (CXO 15/06/2020).
Core has resolved that it will pay LTR $1.5M cash before July 14 from its cash reserves of $8.5 million (30 June 2020).