Tawana Resources NL said Sept. 23 that it is acquiring the Uis project, which has an estimated 20 million tonnes of tailings stockpile derived from pegmatite tin mines in Namibia.
The acquisition of the project will be carried out through the purchase of Lithium Africa No. 1, which has rights to acquire mining rights to Uis for 5,000,000 Tawana shares and A$100,000 cash.
Upon the achievement of certain milestones, Tawana will issue 5,000,000 of its shares for each milestone — upon the successful completion of drilling, analyzing and metallurgical test work to its satisfaction by June 30, 2017, and on a decision to mine on or before Dec. 31, 2018.
The deferred consideration will be subject to shareholder approval. If shareholders do not approve of the share issues, the payments will be made with cash.
Lithium Africa's payment obligations under an existing option deal to acquire Uis from Namibia Silica CC totals US$1.4 million, comprised of four staged cash payments and a 5% net profit interest royalty.
Tawana will assume these payment obligations.
Another party indirectly owns 5% of Uis, which Lithium Africa may purchase for US$500,000.
Tawana acquired in July Mount Belches Pty. Ltd., which owns five lithium prospective tenements in Western Australia, in exchange for 40,000,000 of its shares.