LONDON: Bradda Head Lithium Ltd, a North America-focused lithium development group, announced it has entered into a conditional, definitive and binding asset purchase agreement with Zeus Resources (T) Limited and its parent company, US1 Critical Minerals Ltd, to acquire six prospecting uranium licences in Tanzania.

Under the agreement, BHL Tanzania Limited, a newly formed wholly owned subsidiary of Bradda Head, will acquire the entire rights and interests in the licences, including the Mkuju Project. The licences are PL 11703/2021, PL 11704/2021, PL 11705/2021, PL 11708/2021, PL 11709/2021 and PL 12354/2023.

The company said the acquisition marks a natural extension of its strategy as it evolves into a diversified critical minerals company. Uranium, like lithium, is a foundational input to the global energy transition and to Western efforts to secure supply chains for metals and fuels that underpin clean power generation, Bradda Head said.

The Tanzania licences bring an established, exploration-ready resource base to the company at a modest initial capital outlay, with the majority of consideration tied to future milestones, according to the announcement. The transaction complements rather than competes with Bradda Head’s core lithium portfolio in the United States, broadening its critical minerals exposure and diversifying jurisdictional and commodity risk, while the flagship Whistlejacket project in Arizona remains its primary near-term value driver.

Ian Stalker, executive chair, said: “This transaction represents a logical next step in our journey toward becoming a broader critical minerals company. Uranium sits alongside lithium as a vital building block of the clean energy future and adds to our efforts to strengthen and secure supply chains in the West.”

“By bringing in the Tanzanian licences we secure a solid, drill-ready project at limited upfront cost, with the majority of the consideration dependent on future project success,” Stalker said. “The acquisition sits comfortably alongside our established US lithium assets rather than overlapping them, giving us wider commodity and geographic reach, while our Arizona flagship Whistlejacket project continues to drive near-term progress.”

Total consideration under the asset purchase agreement is US$1.8 million, payable as follows: US$1 million in cash on the completion date; US$300,000 in cash or by issue of shares, at the company’s determination, when Bradda Head produces either an indicated or measured mineral resource of at least 25 million pounds of U3O8 in accordance with NI 43-101; and US$500,000 in cash or by issue of shares, at the company’s determination, upon completion of a definitive feasibility study and a formal decision to build an operating uranium mine sourcing U3O8 from any of the licences.

For the first and second instalment payments, the number of shares to be issued will be determined by dividing the relevant instalment amount by the 30-day volume-weighted average price of the company’s shares on AIM on the trading day immediately prior to satisfaction.

Bradda Head will also pay Zeus an exclusivity fee of US$120,000 to settle upcoming rents due on the licences prior to completion. The fee is immediately repayable if completion does not occur by Oct. 15, 2026. If the exclusivity fee is not repaid when due, the company may elect to convert it into US1 shares at a price per share equal to the 30-day volume-weighted average price of US1 shares on the date of such election. Any portion of the exclusivity fee not used to satisfy annual rent payments is to be repaid or may be deducted by the company from the cash consideration due at completion.

Zeus and US1 have provided extensive warranties relating to title to the licences, validity and good standing, compliance with licence obligations, absence of encumbrances, litigation and environmental matters. They will indemnify Bradda Head and BHL Tanzania against environmental liabilities relating to the licences to the extent arising from acts or omissions occurring on or prior to the completion date.

Completion is conditional upon the Mining Commission consenting to and registering the assignment of the licences to BHL Tanzania, payment of all applicable statutory fees and taxes, and compliance with all applicable regulatory requirements. The company said it will notify once these conditions have been satisfied and completion is effective.