- Auroch Minerals (AOU) acquires an 80 per cent interest in the Nevada lithium project in the US
- The company’s stake comes via a predominantly shares-based agreement to acquire 80 per cent of Nevada Lithium, the 100 per cent shareholder of Nevada Li Corp, which in turn holds the rights to the project
- Consideration for the acquisition of the asset includes Auroch issuing the vendors 7.2 million Auroch shares and 7.2 million performance rights
- The Nevada project comprises four prospect areas covering about 65 square kilometres of ground that Auroch says is considered prospective for sedimentary-hosted lithium deposits
- AOU shares up 7.69 per cent to 14 cents
Auroch Minerals (AOU) has picked up an 80 per cent interest in the Nevada lithium project in the US.
The company’s stake comes via a predominantly scrip-based agreement to acquire 80 per cent of Nevada Lithium, the 100 per cent shareholder of Nevada Li Corp, which in turn holds the rights to the project.
Consideration for the acquisition of the asset includes Auroch issuing the vendors 7.2 million Auroch shares and 7.2 million performance rights.
The performance rights convert to shares upon Auroch announcing a new drill intersection of 25 metres at 1,000 parts per million lithium commencing within 100 metres vertical from the surface of the project area.
Auroch will also reimburse the vendors for expenditure incurred in respect to the project for up to US$220,000 (A$297,000).
As part of the agreement, Auroch will provide a loan facility of up to US$230,000 to Nevada Lithium from the execution date of the share sale agreement.
The Nevada project consists of four prospect areas spanning about 65 square kilometres of ground that Auroch said was considered prospective for sedimentary-hosted lithium deposits.
“The areas cover the same geological formations that host very large lithium deposits in the region, including the TLC lithium project nearby,” Managing Director Aidan Platel said.
“The acquisition adds to and supplements the company’s increasing focus on battery metals and represents a tremendous opportunity to enhance value for Auroch shareholders,” he said.
The company pointed out the project was is also strategically located about 340km south-east of the Tesla Gigafactory near Reno, Nevada, with access to major Californian ports.
Auroch said it was undertaking an internal review of its non-nickel assets including the Nevada lithium project and looking at various opportunities to unlock value.
AOU shares were up 7.69 per cent to 14 cents at 3:33 pm AEST.