In March, BlueBird Battery Metals (BATT.V) entered into a binding LOI with Southern Lithium Pty to acquire all outstanding shares of the private company to get its hand on 12 tenements that are being explored for lithium. In its press release, BlueBird did refer to existing lithium projects in Australia, but hasn’t shared any details on the tenements they just acquired other than ‘historical exploration has taken place and indicates the existence of pegmatite on the tenements’. The specific project page on the website does seem to contain more information. An exploration program to verify the lithium potential of the pegmatites on Southern Lithium’s tenements is underway.
To complete the acquisition of all outstanding shares of Southern Lithium, BlueBird will issue C$2.5M worth of stock based on a 30 day VWAP price. There also are some milestone payments which includes paying C$1.5M worth of stock based on a similar 30 day VWAP should BlueBird define 15Mt in a resource estimate at an average grade of in excess of 1% Li2O and there are additional payments due based on successfully signing and completing offtake agreements. And finally, BlueBird Battery Minerals will be required to pay a 2.5% Net Smelter Royalty on the mineral production on the Southern Lithium tenements.