LONDON, UK: Zinnwald Lithium plc, the German focused lithium development company, announced the signing of a Heads of Terms Agreement with Ocean Partners UK Ltd, a trader of base metal ores and concentrates and parent company to Shanoon Resources Ltd, owner of the Galmoy Prospecting Licence in Ireland, for it to acquire Erris Zinc Ltd, the Company’s 100% owned subsidiary that owns the Abbeytown Zinc License in Ireland.
Whilst the head of terms is non-binding, it is anticipated that a definitive legal agreement reflecting these terms will be entered into between the Company and Ocean within the next month. This legal agreement shall also be subject to final approval by the Irish Geoscience Regulation Office.
HIGHLIGHTS
· Ocean to acquire Erris Zinc Ltd for €1
· Ocean commits to spend €130,000 to end 2025 or Zinnwald can effect buy-back
· Zinnwald to receive 1% Net Smelter Royalty and €200,000 cash payment six months after commencement of commercial production from Abbeytown
Zinnwald Lithium CEO, Anton du Plessis, said: “We are pleased to have found a partner to develop Abbeytown whilst we focus on advancing our Zinnwald Lithium Project towards the planned completion of a Bankable Feasibility Study at the end of 2023 and commencement of production in Q4 2026. As the core asset that underpinned our original listing on AIM in 2017, our 2018/19 exploration work identified excellent mineralisation at Abbeytown in the original drill holes, while the metallurgical review showed that a good quality concentrate could be produced. We look forward to Ocean Partners UK taking the exploration further and, hopefully in the longer term, into production.”
Shanoon Resources MD, Alan Buckley, said: “We are delighted that through Ocean we have been able to secure the rights to this highly prospective licence with high priority drilling targets identified.”