TIDMBNR
RNS Number : 8437J
Blenheim Natural Resources PLC
03 July 2017
3 July 2017
Blenheim Natural Resources Plc
("Blenheim" or "the Company")
Investment in Dieba and Nimissila lithium projects in Mali
Blenheim is pleased to announce that following its discussions
with Xantus Inc ("Xantus"), the Company has, by mutual agreement,
terminated its option with Xantus to purchase a 30 per cent
interest in the Dieba permit (the "Dieba Option") and has entered
into a conditional share purchase agreement with Xantus ("Share
Purchase Agreement") to acquire a 40 per cent interest in Mansa
Lithium Inc ("Mansa") for a consideration of GBP400,000 in cash
(the "Cash Consideration") and 100,000,000 ordinary shares of 0.1
pence each in the capital of the Company (the "Consideration
Shares"). The GBP25,000 option fee paid by Blenheim pursuant to the
Dieba Option will be offset against the payment of the Cash
Consideration, so the cash cost to Blenheim will be GBP375,000.
Xantus has agreed to invest the entire Cash Consideration directly
into Mansa to fund its prospecting and exploration costs with no
dilution to Blenheim's 40 per cent interest.
Mansa is a BVI incorporated mineral exploration company which,
through its wholly owned subsidiary, owns a prospecting permit over
the Dieba area in southern Mali. Mansa has made all the necessary
filings with the Ministry of Mines and paid all applicable fees to
obtain an exploration permit over the area (the "Dieba Exploration
Permit"), which is expected to be granted on or before 30 August
2017.
On completion of the Share Purchase Agreement, Mansa will also
have the right to acquire an initial 80% indirect interest in the
Nimissila exploration permit ("Nimissila Permit") in southern Mali
owned by La Societe Omnium Invest SA ("Omnium"). Omnium has granted
Xantus an option to acquire an initial interest of 80% in the
Nimissila Permit (which could increase to 100%) for US$150,000
until 16 December 2017 during which time Xantus has the exclusive
right to explore and evaluate the permit area. The Share Purchase
Agreement provides that Mansa shall control the exercise of the
option by Xantus and that on such exercise, Xantus shall procure
that, provided that Mansa pays the US$150,000 option exercise fee,
its interest in the Nimissila Permit is granted to Mansa. In
addition, Blenheim shall have the right to acquire Xantus's entire
interest in the Nimissila Permit in the event that Mansa decides
not to take Xantus's interest in the Nimissila Permit.
Completion of the acquisition of the Company's 40 per cent
interest in Mansa is conditional, inter alia, upon the grant of the
Dieba Exploration Permit and completion of the Company's due
diligence on the Dieba Exploration Permit and Nimissila Permit by
30 August 2017.
Upon satisfaction of the conditions precedent to the Share
Purchase Agreement, Blenheim will allot and issue the Ordinary
Shares to Xantus pursuant to the existing share issuance
authorities granted by shareholders. The 100,000,000 Ordinary
Shares issued to Xantus will be subject to a six-month lock-in
period and a further six month orderly market arrangement.
Blenheim's Chairman Chris Ells commented: "We believe that
Blenheim's 40% stake in Mansa can be a springboard to further
investment in lithium projects in West Africa. The Dieba and
Nimissila projects, together with the two Nashwan permits
conditionally acquired earlier this year, will give Blenheim a
significant foothold for potential lithium opportunities in Mali.
Blenheim continues to work with Xantus to assist in its ambition to
be a dominant player in the exploration and development of lithium
assets in West Africa. Mali and Niger are proven mining
jurisdictions which contain high grade lithium occurrences and
Blenheim looks to make further investments in the region."
About Dieba and Nimissila
The Dieba prospecting permit and the Nimissila Permit abut
licences with known lithium pegmatites.
Dieba lies immediately north of the licence held by Birimian
Limited ("Birminian") (ASX:BGS) and Nimissila lies immediately
south of a licence held by Kodal Minerals plc ("Kodal") (AIM: KOD).
Both the Birimian and the Kodal licences contain high-grade lithium
discoveries.
The Dieba Exploration Permit will, on grant to Mansa, be
contiguous to the north of Birimian's Bougouni lithium project
(Goulamina), where Birimian announced on 22 June 2017 a JORC
Mineral Resource of 32.9Mt at 1.37% Li2O for 451,000 tonnes of
contained Li2O at 0.4% cut-off.
Lithium bearing pegmatites have been recorded within the
Nimissila Permit, which is adjacent to the Kassokoro permit, where
Kodal has reported wide, high-grade lithium pegmatite drill
intersections. Kodal recently announced initial flotation test
results on drill chips from its Kassokoro permit showing that
high-grade lithium (spodumene) concentrate had been produced with
recoveries of 80% to 87% from initial flotation testwork. The test
concentrates were of suitable quality for producing lithium
carbonate with low levels of impurities.
The Board of Blenheim believes that Southern Mali has emerged as
a promising lithium province where the presence of the rapidly
maturing Birimian and Kodal projects is creating a critical mass of
lithium development projects.
Mansa was incorporated on 24 January 2017 and has incurred no
costs to date.
Following completion of the acquisition, the Cash Consideration
reinvested into Mansa will be used by Mansa to fund initial
prospecting and exploration work at the Dieba permit and the
Nimissila Permit.
Blenheim will continue to negotiate with Xantus and its
shareholder about expanding its interest across the whole Xantus
lithium portfolio in Mali and in Niger.
Xantus is a private BVI incorporated mineral exploration company
focused on acquiring and developing large scale lithium assets in
West Africa. Xantus has assembled a portfolio of prospective
permits covering in excess of 1,500 sq km in Mali and Niger,
countries recognised as having the potential to contain world class
deposits. Further information on Xantus can be found on its
website, http://www.xantus-inc.com/
Maps showing the location of the Dieba prospecting permit and
Nimissila Permit will shortly be available on the Company's
website:
www.blenheimnaturalresources.com/reports-and-documents/other-documents
Ends
For any further information please contact:
Chris Ells Blenheim Natural Resources +44 (0) 1622 844601
Mark Parker Plc +44 (0) 77 84170825
Colin Aaronson/Jamie +44 (0) 20 7383
Barklem/ Daniel Bush Grant Thornton UK LLP 5100
Nick Emerson SI Capital Ltd +44 (0) 1483 413500
Lucy Williams / Duncan Peterhouse Corporate Finance +44 (0) 20 7469
Vasey Limited 0932
+44 (0) 20 7710
Colin Rowbury Cornhill Capital Limited 9610
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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