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Zenith Minerals secures funding to unlock U.S., Mexico lithium projects

Monday, March 6, 2017 17:17
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Zenith Minerals (ASX:ZNC) has entered into a funding deal with a private company controlled by prominent UK investor Jim Mellon to unlock the potential of its U.S. and Mexican lithium projects.

The private entity, Bradda Head Ltd, will provide a cash refund of Zenith’s expenditure to date up to US$500,000.

Moreover, Bradda will spend US$5 million in exploration expenditures over three years to earn a 55% interest, with a one-off right for Zenith to contribute 45%, or be free carried at 30% to the end of prefeasibility studies on the two projects.

In addition, commitments have been received from Jim Mellon and other sophisticated investors for a concurrent share placement of A$1.5 million at $0.10 per share.

Jim Mellon, better known to some as the ‘Master Investor’, has been described by the investing community as the UK’s answer to Warren Buffet.

Zenith has assembled a fully owned lithium project portfolio over the past 6 – 12 months, including lithium brine, lithium pegmatite and lithium clay targets in the U.S. and Mexico.

Zenith’s Spencer and Wilson Salt Flat brine projects in Nevada, U.S. are close to both Tesla Inc’s (NASDAQ:TSLA) Gigafactory and to Albemarle Corporation’s (NYSE:ALB) Silver Peak-Clayton Valley lithium brine operation.

Silver Peak-Clayton Valley is the only operational lithium project in the U.S.

Zenith’s three new concessions – Illescas, San Juan and San Vicente make up the Zacatecas lithium brine project in the emerging lithium brine district of San Luis Potosi State, Mexico.

The A$1.5 million placement and cash refund of US$500,000 also provides a timely cash injection to allow Zenith to progress its Turkish gold, Australian lithium and base metal projects.

Story by ProactiveInvestors


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