- Iconic Minerals (ICM) signed a US$5.6-million agreement with Lithium of Nevada for an interest in the Smith Creek Project in Nevada
- Lithium of Nevada may earn a 50 per cent interest in Smith Creek by paying US$5.6 million in cash to Iconic Minerals in several instalments
- Once all payments have been made, the project which will continue as a joint venture between the two companies
- The project’s claim block covers a 46-square-kilometre area which may host lithium brine systems and other sediment resources
- Iconic Minerals (ICM) is down 4.17 per cent trading at C$0.11 per share at 3:17 p.m. ET
Iconic Minerals (ICM) has signed a US$5.6-million agreement with Lithium of Nevada.
The agreement between the two companies is connection with an interest in the Smith Creek Project in Nevada.
Lithium of Nevada is a private Australian company which will have the option to earn a 50 per cent interest in Smith Creek by paying US$5.6 million in cash to Iconic Minerals.
This new definitive agreement replaces a previously-announced term sheet from December.
The cash earn-in payments will be used by Iconic Minerals to fund work programs on the project during the term of the option and will be paid in four instalments all before September 30.
Once all payments have been made, Lithium of Nevada will control 50 per cent of the project which will continue as a joint venture between the two companies.
If the joint venture is formed, the companies will negotiate and finalize a joint venture agreement within 150 days.
The requirements of the joint venture agreement would include conducting operations and development on the project, funding of operations, diluting participating interests, and converting a party’s participating interest into a 1.00 per cent net smelter returns royalty.
If the required conditions are not met, Iconic Minerals will terminate the interest option for the Smith Creek Project.
The project’s claim block covers a 46-square-kilometre area which may host lithium brine systems and other sediment resources.
Iconic Minerals (ICM) is down 4.17 per cent, trading at C$0.11 per share at 3:17 p.m. ET.