REG - Technology Minerals European Lithium Ltd - Proposed Sale of LRH Resources to European Lithium

European LithiumAnnouncement

22/04/2024 07:00

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RNS Number : 4172L  Technology Minerals PLC  22 April 2024

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information is
disclosed in accordance with the Company's obligations under Article 17 of the
UK MAR. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

 

22 April 2024

 

Technology Minerals Plc

("Technology Minerals" or the "Company")

 

Proposed Sale of LRH Resources Limited to European Lithium

 

Technology Minerals Plc (LSE: TM1), the first listed UK company focused on
creating a sustainable circular economy for battery metals, is pleased to
announce it has signed a binding Heads of Agreement to sell its interest in
exploration licences in Leinster, Republic of Ireland. This is envisaged to be
effected by the sale of 100% of the issued share capital of LRH Resources
Limited ("LRH") held by the Company to European Lithium Limited (ASX: EUR,
FRA: PF8, OTC: EULIF) ("European Lithium") for a gross consideration of US$10
million ("the Proposed Transaction").

 

Highlights

 

·    Technology Minerals has entered into binding Heads of Agreement with
European Lithium to sell 100% of the issued share capital of LRH, a
wholly-owned subsidiary of Technology Minerals

·    LRH is the owner of licences which comprise the Leinster Lithium
Project in Ireland (the "Project")

·    Consideration of US$10 million to be settled through the transfer to
Technology Minerals of US$10 million worth of shares held by European Lithium
in Critical Metals Corp (Nasdaq: CRML) ("CRML"), a leading mining company
focused on mining critical metals and minerals, calculated at 90% of the
closing market price of the shares on the day before the signing of the Heads
of Agreement (the "Consideration Shares")

·    The Consideration Shares will be locked in and held in escrow until
28 February 2025

·    Completion of the Proposed Transaction is subject to technical and
legal due diligence to be completed by European Lithium and other conditions
customary for this type of transaction

·    The Company will retain LRH's 100% interests in the Asturmet Ni-Cu-Co
Project, N. Spain

·    The Board believes that this is an excellent outcome for all
stakeholders, and validates the Company's strategy to identify and advance
early-stage projects up the value curve to attract buyers and/or partners to
bring significant additional value to the Company

 

Details of the Proposed Transaction

 

Subject to completion of the Proposed Transaction, the Company will sell LRH
to European Lithium, which includes 100% of its rights, title and interest in
the following:

·    the 23 licences that comprise the Leinster Lithium Project (the
"Licences") (see Table 1 below);

·    all associated technical information, including geological,
geochemical and geophysical reports, surveys, mosaics, aerial photographs,
samples, drill core, drill logs, drill pulp, assay results, maps and plans,
whether in physical, written or electronic form relating to the Licences; and

·    statutory licences, approvals, consents, authorisations, rights or
permits relating to the Licences.

 

The Company will retain LRH's 100% interests in the Asturmet Ni-Cu-Co Project,
N. Spain.

 

Consideration: In consideration for the Proposed Transaction, European Lithium
will transfer to Technology Minerals US$10 million worth of fully paid
ordinary shares in the capital of Critical Metals Corp (a company incorporated
under the laws of Delaware in the United States and listed on NASDAQ)
currently held by European Lithium, at an issue price equal to 90% of the
closing price of CRML shares on the day prior to the date on which the last of
the parties enters into the Agreement signed date). The Consideration Shares
will be held in escrow until 28 February 2025.

 

Conditions Precedent: Completion of the transaction is conditional upon
completion of due diligence by

European Lithium as soon as practicable, Technology Minerals and CRML and its
shareholders agreeing the detailed terms of the escrow and European Lithium
obtaining any necessary third-party approvals or consents to complete the
transaction. Completion will occur five business days after the last Condition
Precedent has been satisfied.

 

Other Key Terms: Technology Minerals is obliged to maintain the tenements in
good standing and meet all obligations in respect of the licences up until
completion.

 

Background to the Leinster Lithium Project

 

For the purposes of this agreement, the Leinster Lithium Project will be
subdivided into and termed the North Leinster and a South Leinster Block. The
North Leinster Block will consist of 15 prospecting licences covering an area
of 477 km² and the South Leinster Block with eight licences covering a
further 284 km². Each block contains several developing prospect areas where
significant lithium bearing spodumene pegmatites have been located and
confirmed in surface sampling and more recently in diamond drilling on PL
1597.

 

The Consideration is split evenly between Seven licences fully owned by LRH,
and 16 licences in respect of which Canadian-listed Global Battery Metals
("GBML") currently holds an interest of 55% under an exclusive Earn-in and
option agreement with GBML.

 

Table 1 - Licenses

       Licence  Area         Status   Area

Km2
 No.
 1     3030     NE Leinster  TM-GBML  44.94
 2     3285     NE Leinster  TM-GBML  40.59
 3     3799     NE Leinster  TM-GBML  41.88
 4     4540     NE Leinster  TM-GBML  31.07
 5     4541     NE Leinster  TM-GBML  33.71
 6     4545     NE Leinster  TM-GBML  32.53
 7     4546     NE Leinster  TM-GBML  20.12
 8     4536     NE Leinster  TM-GBML  25.58
 9     4537     NE Leinster  TM-GBML  24.58
 10    4538     NE Leinster  TM-GBML  24.93
 11    4539     NE Leinster  TM-GBML  40.34
 12    4542     NE Leinster  TM-GBML  33.06
 13    4543     NE Leinster  TM-GBML  40.65
 14    4544     NE Leinster  TM-GBML  21.90
 15    4547     NE Leinster  TM-GBML  21.50
 16    1597     SW Leinster  TM-GBML  48.32
 17    3895     SW Leinster  TM Only  23.74
 18    3896     SW Leinster  TM Only  34.49
 19    4054     SW Leinster  TM Only  33.09
 20    1541     SW Leinster  TM Only  36.61
 21    1542     SW Leinster  TM Only  20.39
 22    3213     SW Leinster  TM Only  43.42
 23    3214     SW Leinster  TM Only  43.33
                                      760.77

 

Table 1: List of prospecting licenses in the Leinster Area

 

Alex Stanbury, CEO of Technology Minerals, said: "We are pleased to have
agreed the proposed sale of LRH Resources Limited, the owner of the licenses
of the Leinster Lithium Project in Ireland, to European Lithium. The agreement
is an endorsement of our ability to identify and develop early-stage projects
with significant potential.  It also underscores our strategy to advance
early-stage projects up the value curve and attract potential buyers or
partners to bring additional value to the Company and its shareholders."

 

 

Enquiries

 

 Technology Minerals Plc
 Robin Brundle, Executive Chairman             c/o +44 (0)20 4582 3500

 Alexander Stanbury, Chief Executive Officer

 Oberon Investments Limited (Brokers)
 Nick Lovering, Adam Pollock                   +44 (0)20 3179 5300

 Gracechurch Group (Financial PR)
 Harry Chathli, Alexis Gore, Rebecca Scott     +44 (0)20 4582 3500

 

Technology Minerals Plc

 

Technology Minerals is developing the UK's first listed, sustainable circular
economy for battery metals, using cutting-edge technology to recycle, recover,
and re-use battery technologies for a renewable energy future. The Company
currently holds 48.35% of the issued share capital of Recyclus Group Ltd, the
UK's first industrial-scale recycler of both lithium-ion and lead acid
batteries.

 

Technology Minerals is focused on raw material exploration required for Li-ion
batteries, whilst solving the ecological issue of spent Li-ion batteries, by
recycling them for re-use by battery manufacturers. Further information on
Technology Minerals is available at  www.technologyminerals.co.uk
(http://www.technologyminerals.co.uk) .   

 

About European Lithium

 

European Lithium Limited is a listed (ASX: EUR)(FRA: PF8)(OCT: EULIF) mining
exploration and development company focusing on its advancing lithium projects
in Europe. European Lithium aims to be the first and largest local lithium
supplier into an integrated European battery supply chain.

 

About Critical Metals Corp.

 

Critical Metals (Nasdaq: CRML) is a leading mining company focused on mining
critical metals and minerals, and producing strategic products essential to
electrification and next generation technologies for Europe and its partners.
Its initial flagship asset is the Wolfsberg Lithium Project located in
Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is
the first fully permitted mine in Europe and is strategically located with
access to established road and rail infrastructure to become the next major
producer of key lithium products to support the growing demand for electric
vehicles (EVs) and Europe's burgeoning lithium-ion battery supply chain. In
addition, Critical Metals owns a 20% interest in prospective Austrian mineral
projects previously held by European Lithium Ltd (ASX: EUR). For more
information, please visit https://criticalmetalscorp.com/
(https://criticalmetalscorp.com/) .

 

 

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