Blenheim Natural Resources PLC Option to invest in lithium project in Mali (4100U)

TIDMBNR

RNS Number : 4100U

Blenheim Natural Resources PLC

18 January 2017

18 January 2017

Blenheim Natural Resources Plc

("Blenheim" or the "Company")

Option to invest in lithium project in Mali

Blenheim is pleased to announce that it has been granted an option to acquire a 30 per cent interest in the Dieba exploration permit in Southern Mali ("Dieba"), an area adjacent to Birimian Limited's successful Bougouni Lithium Project.

The option gives the Company the right to acquire a 30 per cent interest in Dieba from Xantus Inc ("Xantus") for a consideration of GBP175,000 in cash (which will be used by Xantus to fund exploration at Dieba) and 60,000,000 ordinary shares of 0.1 pence each in the capital of the Company ("Consideration Shares"). Blenheim will pay GBP25,000 to secure this option, which can be exercised at any time until 28 February 2017, or such later date as the parties may agree prior to the expiry of the option period. Details of the option agreement are given below.

Blenheim's Chairman Chris Ells commented "Dieba is a very promising grass-roots' project and we are delighted to have this opportunity to acquire a significant interest in this venture. We consider this to be a strategic investment into a dynamic, well-run exploration project, especially as lithium has been, and is likely to remain, one of the best performing mineral commodities. During the option period, we will perform due diligence and conduct an interpretation of airborne geophysical and other data, before we make a final investment decision. We believe that there are good opportunities for further lithium projects in Mali and elsewhere."

Dieba is located about 150km south of the Malian capital, Bamako. Dieba is adjacent to Birimian Limited's Bougouni Lithium Project and Blenheim's directors believe that the Dieba Project may host similar lithium-rich pegmatites. The cash paid by the Company, if the option is exercised, will be used by Xantus to conduct the first phase of exploration during 2017. Blenheim also plans to conduct its own interpretation of the existing airborne geophysical and other survey data to help locate pegmatites within and beyond the Dieba Project area. A map showing the location of Dieba will shortly be available at the Company's website: www.blenheimnaturalresources.com/reports-and-documents/other-documents/DiebaMap.pdf

The terms of the option agreement

Xantus is a BVI incorporated mineral exploration company which holds an exploration permit over the Dieba project via its wholly owned Malian subsidiary, Xantus Exploration SARL ("XES"). In exchange for an option fee of GBP25,000, Xantus has granted Blenheim an option to acquire a 30 per cent interest in Dieba. The total consideration payable, if Blenheim exercises the option, will comprise 60,000,000 Consideration Shares issued and allotted to Xantus and GBP175,000 in cash, which Xantus has agreed to use to fund exploration costs at Dieba with no dilution to Blenheim's initial 30 per cent interest. Blenheim can exercise the option at any time until 28 February 2017, or such later date as the parties may agree prior to the expiry of the option period.

Xantus will incorporate a new company ("Newco") to own the whole equity of XES, which holds the Dieba exploration permit, and to seek additional lithium opportunities. If Blenheim exercises the option, the Company will receive a 30 per cent ownership interest in the issued share capital of Newco.

The decision whether or not to exercise the option is at the sole discretion of Blenheim and is conditional upon the Company's directors having sufficient authority to issue the Consideration Shares, and upon Xantus having incorporated Newco.

The option will lapse and the option fee will be immediately repayable to Blenheim if Xantus does not satisfactorily complete its obligations under the agreement. The option will also lapse, with no option fee repayment, if Blenheim's directors are unable to secure the relevant authorities to issue the Consideration Shares in advance of the Company electing to exercise the option, or if Blenheim elects not to exercise the option in the period to 28 February 2017.

The Company intends to convene a general meeting of shareholders to seek the necessary authorities to issue the Consideration Shares.

Ends.

For any further information please contact:

 
                       Blenheim Natural       +44 (0) 1622 
Chris Ells              Resources Plc          844601 
 
Colin Aaronson/Jamie 
 Barklem/ Daniel       Grant Thornton UK      +44 (0) 20 
 Bush                   LLP                    7383 5100 
 
                                              +44 (0)1483 
Nick Emerson           SI Capital Ltd          413500 
Lucy Williams /        Peterhouse Corporate   +44 (0) 20 
 Duncan Vasey           Finance Limited        7469 0932 
                       Cornhill Capital       +44 (0) 20 
Colin Rowbury           Limited                7710 9610 
 

The information contained within this announcement is considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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January 18, 2017 02:00 ET (07:00 GMT)