Novo executed a series of definitive agreements with Liatam Mining Pty Ltd (“Liatam”) in December 2022, pursuant to which Liatam was granted the right to earn an 80% interest in battery mineral rights at Quartz Hill (the “Earn-In”).
Liatam is required to spend A$1.5 million over 24 months in order to complete the Earn-In. Novo will be free-carried to the earlier of the completion of a bankable feasibility study or Liatam having sole funded A$20 million (including the initial A$1.5 million Earn-In amount) (the “Contribution Date”). On or around the Contribution Date, Novo will have the right to elect to contribute its pro-rata share of expenditure or convert to a royalty equal to 1% of gross lithium sale proceeds or an amount equal to 20% of any royalty owing to the State of Western Australia on gross battery mineral sale proceeds (other than lithium).
Liatam exercised its right to add lithium rights over Novo’s Pilbara tenements of Liatam’s choosing (subject to certain exclusions and tenements which are already subject to arrangements with third parties) to the Battery Minerals JV and Earn-In at an agreed rate.
The Earn-In is otherwise subject to industry-standard earn-in and joint venture conditions, including coordination of exploration and development activities amongst the parties. Throughout the Earn-In, Liatam’s exploration activities will be prioritised. Liatam also has the right to terminate the Earn-In after spending A$0.75 million.
Liatam are undertaking an A$4 million exploration program in 2023.
Battery mineral rights include lithium, nickel, cobalt, graphite, manganese, aluminium, tin, tantalum, caesium, rubidium, magnesium, vanadium, rare earth elements, and any other minerals defined as being enriched in and hosted in LCT and NYF pegmatites, in any and all forms, but not gold or silver.
Lithium rights includes lithium, tin, tantalum, caesium, rubidium, pegmatite-hosted rare earths, and any other minerals defined as being enriched in and hosted in LCT and NYF pegmatites, in any and all forms, but not gold or silver.