Distrito Federal, Brazil Jul 8, 2022 (Issuewire.com) – Kess Energy is pleased to announce that it has entered into a binding asset purchase agreement dated June 13, 2022. Kess shall acquire 100% ownership of two mines which include two lithium mining licenses in Ceara, Brazil. Mineralized pegmatites have been identified on the Licences. According to Jack Donnel, Operations Director of Kess Energy, “the work by the vendor provides excellent indications of potential for a significant resource on the property. We have completed a binding agreement subject to completing some verification work in the field.”
Pursuant to the terms of the Agreement and in order to complete the Transaction, Kess Energy shall pay:
- USD$100,000 on the execution of the Agreement (completed); and
- USD$3,210,000 on the closing of the Transaction.
If during the 18 months following the closing of the Transaction, the Company, through an independent qualified person defines an inferred mineral resource estimate of a minimum of 5Mt with a Li2O content above 1.3%, Kess shall, (i) issue a such number of Lithium Ionic shares equal to USD$2 million calculated using the 7-day VWAP of the Lithium Ionic shares on the TSX Venture Exchange ending on the effective date of the technical report evidencing such mineral resource estimate, or (ii) pay USD$2 million in cash on the effective date of the technical report evidencing such mineral resource estimate.
Completion of the Transaction is subject to customary closing conditions including, among others, approval of the TSX Venture Exchange and the Company is satisfied with the results of its due diligence review. Kess Energy has 90 calendar days from the date of execution of the Agreement to complete its due diligence review. The Transaction is arm’s length and the Company is not paying any finder fees in connection therewith.
To find out more information please visit us at Kess Energy