The Directors of eMetals Limited (ACN 142 411 390) (ASX:EMT) (eMetals or Company) are pleased to announce the Company has completed the acquisition and settlement of the Poona project pursuant to the binding tenement sale and purchase heads of agreement (Agreement) which sets out the terms upon which eMetals has acquired a 100% legal and beneficial right, title and interest in Western Australian mineral tenement E20/896 and a 90% legal and beneficial right, title and interest in Western Australian mineral tenement E20/885 (Tenements) from Venus Metals Corporation Limited (ACN 123 250 582) (ASX:VMC) (Acquisition). Please refer ASX release dated 11 June 2020.
Under the terms of the Acquisition Agreement, the Company has acquired the Tenements for the collective purchase consideration as below:
- A$15,000 paid on the execution of the Agreement;
- A$145,000 paid on the Settlement Date (17 June 2020);
- The assumption of VMC’s existing joint venture arrangement with Bruce Legendre in relation to E20/885, which entitles Mr Legendre to a free carried 10% interest until such time as eMetals makes a decision to mine on that tenement;
- A royalty to VMC of A$0.50 per tonne of ore extracted for mining purposes (ie not waste product) from E20/896, payable only on and from commercial mining on that tenement;
- Two royalties which together aggregate to a 1.5% net smelter royalty to historical explorers and prospectors on E20/885, payable only on and from commercial mining on that tenement;
- Performance payments of up to A$100,000 subject to and conditional upon the achievement of the following performance milestones:
(i) A$50,000 payable upon the definition of an inferred mineral resource of not less than 200,000 tonnes of Li2O or equivalent at 1% on either Tenement; and
(ii) A$50,000 payable upon the definition of a probable mineral ore reserve of not less than not less than 200,000 tonnes of Li2O or equivalent at 1% on either Tenement.