Blenheim Natural Resources PLC Option to invest in lithium project in Mali (4100U)
January 18 2017 - 2:00AM
UK Regulatory
TIDMBNR
RNS Number : 4100U
Blenheim Natural Resources PLC
18 January 2017
18 January 2017
Blenheim Natural Resources Plc
("Blenheim" or the "Company")
Option to invest in lithium project in Mali
Blenheim is pleased to announce that it has been granted an
option to acquire a 30 per cent interest in the Dieba exploration
permit in Southern Mali ("Dieba"), an area adjacent to Birimian
Limited's successful Bougouni Lithium Project.
The option gives the Company the right to acquire a 30 per cent
interest in Dieba from Xantus Inc ("Xantus") for a consideration of
GBP175,000 in cash (which will be used by Xantus to fund
exploration at Dieba) and 60,000,000 ordinary shares of 0.1 pence
each in the capital of the Company ("Consideration Shares").
Blenheim will pay GBP25,000 to secure this option, which can be
exercised at any time until 28 February 2017, or such later date as
the parties may agree prior to the expiry of the option period.
Details of the option agreement are given below.
Blenheim's Chairman Chris Ells commented "Dieba is a very
promising grass-roots' project and we are delighted to have this
opportunity to acquire a significant interest in this venture. We
consider this to be a strategic investment into a dynamic, well-run
exploration project, especially as lithium has been, and is likely
to remain, one of the best performing mineral commodities. During
the option period, we will perform due diligence and conduct an
interpretation of airborne geophysical and other data, before we
make a final investment decision. We believe that there are good
opportunities for further lithium projects in Mali and
elsewhere."
Dieba is located about 150km south of the Malian capital,
Bamako. Dieba is adjacent to Birimian Limited's Bougouni Lithium
Project and Blenheim's directors believe that the Dieba Project may
host similar lithium-rich pegmatites. The cash paid by the Company,
if the option is exercised, will be used by Xantus to conduct the
first phase of exploration during 2017. Blenheim also plans to
conduct its own interpretation of the existing airborne geophysical
and other survey data to help locate pegmatites within and beyond
the Dieba Project area. A map showing the location of Dieba will
shortly be available at the Company's website:
www.blenheimnaturalresources.com/reports-and-documents/other-documents/DiebaMap.pdf
The terms of the option agreement
Xantus is a BVI incorporated mineral exploration company which
holds an exploration permit over the Dieba project via its wholly
owned Malian subsidiary, Xantus Exploration SARL ("XES"). In
exchange for an option fee of GBP25,000, Xantus has granted
Blenheim an option to acquire a 30 per cent interest in Dieba. The
total consideration payable, if Blenheim exercises the option, will
comprise 60,000,000 Consideration Shares issued and allotted to
Xantus and GBP175,000 in cash, which Xantus has agreed to use to
fund exploration costs at Dieba with no dilution to Blenheim's
initial 30 per cent interest. Blenheim can exercise the option at
any time until 28 February 2017, or such later date as the parties
may agree prior to the expiry of the option period.
Xantus will incorporate a new company ("Newco") to own the whole
equity of XES, which holds the Dieba exploration permit, and to
seek additional lithium opportunities. If Blenheim exercises the
option, the Company will receive a 30 per cent ownership interest
in the issued share capital of Newco.
The decision whether or not to exercise the option is at the
sole discretion of Blenheim and is conditional upon the Company's
directors having sufficient authority to issue the Consideration
Shares, and upon Xantus having incorporated Newco.
The option will lapse and the option fee will be immediately
repayable to Blenheim if Xantus does not satisfactorily complete
its obligations under the agreement. The option will also lapse,
with no option fee repayment, if Blenheim's directors are unable to
secure the relevant authorities to issue the Consideration Shares
in advance of the Company electing to exercise the option, or if
Blenheim elects not to exercise the option in the period to 28
February 2017.
The Company intends to convene a general meeting of shareholders
to seek the necessary authorities to issue the Consideration
Shares.
Ends.
For any further information please contact:
Blenheim Natural +44 (0) 1622
Chris Ells Resources Plc 844601
Colin Aaronson/Jamie
Barklem/ Daniel Grant Thornton UK +44 (0) 20
Bush LLP 7383 5100
+44 (0)1483
Nick Emerson SI Capital Ltd 413500
Lucy Williams / Peterhouse Corporate +44 (0) 20
Duncan Vasey Finance Limited 7469 0932
Cornhill Capital +44 (0) 20
Colin Rowbury Limited 7710 9610
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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