Cornish Lithium Ltd.
In January 2017, Cornish Metals entered into an Exploration and Option Deed (the “Deed”) with Cornish Lithium Limited ("CLL"), a privately funded UK-based company, whereby CLL has the right to explore for and potentially develop lithium in hot spring brines and associated geothermal energy on all Mineral Rights held by Cornish Metals through its subsidiary, Cornish Minerals Limited (Bermuda), in Cornwall, UK.
In return, Cornish Metals will have a 25% free carried interest in the first project to have a Bankable Feasibility Study completed on it, after which Cornish Metals will be required to contribute its share of development costs or its interest will be diluted. Cornish Metals will have a 10% free carried interest in each subsequent project that has a Bankable Feasibility Study completed on it, after which Cornish Metals will be required to contribute its share of development costs or its interest will be diluted.
In addition, Cornish Metals will have a 2% Gross Revenue Royalty payable from any production of metals from brines and a 2% Gross Revenue Royalty payable from any geothermal energy produced. On each anniversary of the date of the Deed for the initial five year period, CLL had the option to extend the Deed for a further 12-month period in consideration of the issuance of US$50,000 in shares in the capital of CLL to the Company. Commencing January 2022 up to and including January 2026, in the event CLL elects to extend the Deed for a subsequent 12-month period, the annual payments to the Company will be US$100,000 in shares in the capital of CLL. CLL can continue to renew the Deed after January 2026 but with a rising option fee.
In January 2022, Cornish Metals received notice from CLL whereby CLL has elected to extend its option to explore the Company’s mineral rights in Cornwall, UK, for minerals-in-brine for a further 12 months in consideration for the issuance to the Company of shares in the capital of CLL equal to US$100,000 based on CLL’s last share issue price. Upon receipt of the shares, the Cornish Metals owns a total of 6,713,940 shares of CLL.
More detailed information on Cornish Lithium Ltd. can be found here.