- ION Energy Ltd. (ION) signs a binding term sheet for an exploration joint venture with Aranjin Resources Ltd. (ARJIN)
- The joint venture allows for both companies to explore each others licences within Mongolia
- This will ensure that both ION and Aranjin maximize their chances of carrying a property to the development stage
- ION is obligated to expend at least US$500,000 and Aranjin US$3 million over the three years from the date of the term sheet
- ION Energy Ltd. (ION) is down 3.57 per cent trading at $0.405 per share as of 2:42 p.m. EST
- Aranjin Resources Ltd. (ARJIN) is unchanged trading at $0.03 per share as of 2:43 p.m. EST
ION Energy (ION) has signed a binding term sheet for an exploration joint venture with Aranjin Resources Ltd. (ARJIN).
The joint venture allows for both companies to grant one another reciprocal exploration rights to each other’s exploration licences within Mongolia.
Aranjin has the right to explore ION’s properties for base metals including copper, lead, zinc, nickel, cobalt, and associated metals.
Meanwhile, ION can explore Aranjin’s properties for lithium.
The approach is aimed at enlarging exploration areas within the mineral-rich regions of Mongolia.
This will ensure that both ION and Aranjin maximize their chances of carrying the property to the development stage.
The area covered by the joint venture consists of the Sharga Project, Bayan Under Project, Baruun Tal Project, Baavhai Uul Project, Urgakh Naran Project and all mineral rights acquired by each company after the date of entering the joint venture.
If a party has prepared a feasibility study for a deposit on a licence of the other party, and it wishes to undertake development, then the parties shall negotiate a separate joint venture for the development and operation of the project.
ION is obligated to expend at least US$500,000 and Aranjin US$3 million over the three years from the date of the term sheet.
Aranjin is entitled to satisfy any shortfall of its required expenditures in cash for up to US$2.5 million
If a party fails to prepare a feasibility study on the licence of the other party within five years, then the rights of the non-performing party will be terminated.
ION Energy Ltd. (ION) is down 3.57 per cent trading at $0.405 per share as of 2:42 p.m. EST.
Aranjin Resources Ltd. (ARJIN) is unchanged trading at $0.03 per share as of 2:43 p.m. EST.
