DGAP-Adhoc
Deutsche Rohstoff AG: Tin International signs binding MoU to form a Joint Venture with Lithium Australia
DGAP-Ad-hoc: Deutsche Rohstoff AG / Key word(s): Joint Venture
Deutsche Rohstoff: Tin International signs binding MoU to form a Joint |
Mannheim/Leipzig. Tin International AG, 61.5% owned by Deutsche Rohstoff
AG, announced today that it has signed a binding Memorandum of
Understanding (MoU) to form a Joint Venture with Lithium Australia NL
(ASX:LIT). The company is listed on the Australian Stock Exchange and
develops processing technology that allows the economic extraction of
lithium from lithium mica bearing ore (so-called "Sileach(TM)-technology)
Lithium also holds a global portfolio of Lithium deposits.
The "Sadisdorf" deposit, located in Saxony, Germany will become the key
asset of the Joint Venture. Lithium Australia will receive the right to
earn 15% of the to be established company by spending a total of EUR
750,000 on exploration of "Sadisdorf" until the end of 2017. Alternatively
the company can elect to pay the outstanding amount in cash to Tin
International by year-end. By investment of a further EUR 1.25 million over
a 3-year period Lithium Australia has the right to further increase its
interest in the Joint Venture Company to 50%. After the completion of this
"earn-in" period, the partners equally bear the project development costs
or are diluted accordingly.
Upon closing of the final Joint Venture Agreement Tin International will
receive a one-time payment of EUR 200,000 in Lithium Australia shares and
EUR 50,000 in cash.
The Joint Venture will be managed by Lithium Australia and aims to extend
and upgrade the existing "Sadisdorf" JORC (2012) resource (3.36 Mt inferred
resource grading 0.44% Sn at a cutoff of 0.25% Sn) and to delineate a
lithium resource which is anticipated to be associated with the tin