Beleaguered Ellison faces MinRes shareholders
The board of under-siege Mineral Resources faced grilling in Perth over a governance scandal, amid unexpected expressions of support.
Western Lithium USA Corporation (WLC) and Western Uranium Corporation (WUC) said Friday that they have completed the previously announced transaction for the sale, by WUC to WLC, of the royalties and titles constituting substantially all of the Kings Valley mineral property holdings in Nevada for Cdn$6.85 million, paid through the issue to WUC of 5,855,000 WLC common shares.
“This transaction gives Western Lithium a 100% interest in the Kings Valley lithium property,” said Jay Chmelauskas, Western Lithium’s President. “It provides us with a clean corporate structure to take to potential strategic and financing partners as we move forward in developing our Nevada lithium property.”
The transaction results in the transfer of all of the lithium properties out of WUC’s portfolio and eliminates the existing lease and royalty arrangements between the two companies on the Kings Valley property, including a Net Smelter Return of 1.5% and Net Profits Royalty of 3.5% on any lithium and related byproducts. Excluding the Albisu gold exploration target and a royalty granted to Cameco Global Exploration II Ltd. solely in respect of uranium, WLC now has full control of the Kings Valley property claim.
As part of the transaction, WUC has agreed to dispose of its common shares in the capital of WLC, in due course, through one or more block trades or off-market transactions until it holds less than 10% of the outstanding WLC shares. Until it completes such disposition, WUC agrees to refrain from voting against management nominees to the WLC board of directors and to not vote against any arm’s length third party transaction proposed by WLC’s management.
Western Lithium is developing the Kings Valley, Nevada lithium deposit into potentially one of the world’s largest(1) strategic, scalable and reliable sources of high quality lithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of hybrid/electric vehicles.
