Breaker Resources NL (ASX: BRB) has completed the sale of an 80% interest in rights to lithium and lithium-related minerals at its Manna Lithium discovery to a subsidiary of Global Lithium Resources Limited and formed a joint venture that will further advance the Project.
Breaker retains a minimum 20% equity in the Project with Global Lithium carrying all costs and expenditure to complete a bankable positive feasibility within five years.
At the completion of the transaction, Breaker received $6.5 million in cash consideration and 10.268 million Global Lithium shares ($6.5m at 5-day VWAP up to and including 21 December 2021 (being $0.633)). In addition to the upfront consideration received upon completion, Global Lithium will pay Breaker up to a further $20 million in deferred consideration comprising:
If Global Lithium’s subsidiary fails to define a bankable positive feasibility study within five years, Breaker’s equity in the joint venture claws back to 50%.
Breaker’s Chairman, Peter Cook, said completion of the transaction marks the commencement of the Manna Lithium Project Joint Venture with Global Lithium’s subsidiary.
We are pleased to be forming this JV with Global Lithium which is backed by downstream heavyweights of the Lithium industry,” Mr Cook said.
“We will be a supportive and appurtenant partner focussed on our milestone payments and residual 20% interest as they fervently progress the project.
“The additional cash and share component has topped up our available treasury and enables Breaker to be funded through the initial steps of unveiling what we believe will be sound economics for our Lake Roe Gold Project without dilution impositions on our shareholders.”