Impact Minerals has signed a binding Letter of Intent (LOI) to joint venture its Broken Hill project with BlueBird Battery Metals Incorporated.
|Broken Hill Ni-Cu-PGE Project – magnetic data showing mapped mafic-ultramatic units|
Under the terms of the farm-in, Bluebird has the right to earn a 75 per cent interest in the five Exploration Licences that comprise Impact’s Broken Hill project by payments of cash and shares and exploration expenditures totaling CA$5.525 million.
Impact Mineral’s Managing Director Dr Mike Jones said that the compane was very pleased to partner with BlueBird Battery Metals on the Broken Hill Project.
“The management of BlueBird have a strong track record in exploration discovery and resource development and they are committed to exploration success on their Australian portfolio,” said Dr Jones. “They have chosen to focus on the Broken Hill project because of its prospectivity for a wide range of metals that will form a critical part of the emerging market for batteries and renewable energy sources and we look forward to working with them on their exploration programme. This will include early drilling on the targets Impact has already identified.
According to Impact, the partnership with BlueBird is also a successful outcome of the strategic review of the company’s portfolio, which was completed earlier this year and which has also led to the recently announced sale of Impact’s Pilbara gold project and drill programmes at the Commonwealth Project in New South Wales and Clermont Project in Queensland.
Impact and BlueBird have also reached a unique agreement that protects Impact’s shareholding in the short term from any down side movement in BlueBirds share price and also allows BlueBird a short to medium term right to buy back one third of the shares issued to Impact at a price of CA$0.75 per share and a further one third at CA$1.25 per share.