THE BOURSE WHISPERER: Impact Minerals (ASX: IPT) has signed a binding Letter of Intent (LOI) to Joint Venture the company’s Broken Hill project with TSX Venture exchange-listed BlueBird Battery Metals Incorporated (TSX: V BATT).
Impact Minerals explained that under the terms of the farm-in BlueBird has the right to earn a 75 per cent interest in the five Exploration Licences that comprise the Broken Hill project by payments of cash and shares and exploration expenditures totalling CAD$5.525 million (at the last closing price of BlueBird shares of CAD$0.50).
“We are very pleased to partner with BlueBird Battery Metals on the Broken Hill project,” Impact Mineral managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.
“The management of BlueBird have a strong track record in exploration discovery and resource development and they are committed to exploration success on their Australian portfolio.
“They have chosen to focus on the Broken Hill project because of its prospectivity for a wide range of metals that will form a critical part of the emerging market for batteries and renewable energy sources and we look forward to working with them on their exploration program.
“This will include early drilling on the targets Impact has already identified.
“Our partnership with BlueBird is also a successful outcome of the strategic review of our portfolio completed earlier this year and which has also led to the recently announced sale of our Pilbara gold project and drill programs at our Commonwealth project in New South Wales and Clermont project in Queensland.
“All of this forms part of our overall strategy of generating first class projects and finding partners where appropriate.”
The Impact and BlueBird deal entails a unique agreement that protects Impact’s shareholding in the short term from any down side movement in BlueBirds share price and also allows BlueBird a short to medium term right to buy back one third of the shares issued to Impact at a price of CAD$0.75 per share and a further one third at CAD$1.25 per share.