Ashburton Ventures Inc.said May 2 that it has acquired an option over Strider Resources Ltd.'s Thompson Bros lithium property in Wekusko Lake, Manitoba.
The property consists of 18 contiguous claims covering 1,829 hectares.
Under the agreement, Ashburton will pay C$25,000 in cash within seven daysof the signing of the agreement and deliver six more cash and share-based paymentsto Strider, all to be delivered separately and in tranches before the fifth anniversaryof the effectivity of the definitive agreement.
Ashburton also agreed to spend no less than C$1.5 million in expendituresrelating to the development of the property on or before the fifth anniversary ofthe effectivity date of the agreement.
The company also signed a binding heads of agreement with Manitoba MineralsPty. Ltd. to finance all payments and obligations relating to the acquisition ofthe option.
The agreement covers a total financing package of C$2 million over the five-yearoption period. In return, Manitoba Minerals will have the right to back-in to an80% ownership of the property from Ashburton by reimbursing C$150,000 to the company.
Manitoba Minerals will also manage all activities relating to the work programfor the option on behalf of Ashburton, which will retain a free-carried interestover the 20% holding in the project up to the completion of a pre-feasibility study.
The two companies will enter into a joint venture for the property upon theexercise of the option, with each party's contribution reflective of ownership.Manitoba Minerals will also have the right to acquire a further 15% interest inthe project for cash consideration of C$1 million upon entering the joint venture.
Ashburton also said it has entered into a private placement agreement withManitoba Minerals as compensation to Ashburton for the share-based payments to Strider.
Manitoba Minerals agreed to subscribe for 3,000,000 Ashburton common sharesat an issue price of 5 cents per share for a total of C$150,000.