- Zenith Minerals (ZNC) is selling its Vivash Gorge iron project as it shifts its focus to battery minerals for the EV and renewable energy sector
- The company signed a binding agreement with Alien Metals to divest the WA-based project
- Alien Metals will issue $100,000 worth of shares once the sale is completed as well as up to an additional $350,000 in shares, subject to three milestones
- Conditions of the acquisition include Alien completing due diligence and applying to the London Stock Exchange for the issue and quotation of consideration shares
- ZNC shares have ended the day 7.79 per cent in the green to close at 41.5 cents
Zenith Minerals (ZNC) has entered a binding heads of agreement with Alien Metals to divest its Vivash Gorge iron project.
Located in Western Australia’s Pilbara region, the Vivash Gorge Iron Ore Project covers 47 square kilometres and lies 60 kilometres south of Alien’s existing Brockman iron project.
As part of the binding deal, Alien may acquire a 100 per cent interest in the Vivash Gorge project through a mixture of upfront and performance-based consideration shares.
Upon completion of the sale, Alien will issue Zenith $100,000 worth of common shares at a price equal to the 10-day volume-weighted average price (VWAP) of the company’s shares prior to completion.
As part of the deferred consideration, three milestone payments may be made which will see a total of up to an additional $350,000 worth of shares issued to Zenith.
Additionally, Alien Metals agreed to grant Zenith an ongoing royalty payment whilst in production of $1 per dry wet tonne of the quantity of shipped ore sourced from the area within the Vivash Gorge licence boundary.
Zenith Minerals’ strategy is to become a pure lithium company by refocusing on lithium and related metals required for lithium-ion batteries used for electric vehicles and renewable energy storage.
Before the acquisition can be completed, it’s subject to certain conditions such as Alien completing due diligence within 14 days, Alien applying to the London Stock Exchange for the issue and quotation of consideration shares, the companies entering a royalty deed and securing relevant approvals.
ZNC shares ended the day 7.79 per cent in the green to close at 41.5 cents.