Skip to content

Usha Resources to Sell 90% of Jackpot Lake Lithium Brine Project

Usha Resources Ltd. (TSXV:USHA)(OTCQB:USHAF)(FSE:JO0), a North American lithium exploration company, has executed a letter of intent with Stardust Power, Inc., granting Stardust Power the right to earn up to a 90% interest, subject to a 2% Net Smelter Royalty (NSR), in Usha’s Jackpot Lake Lithium Brine Project.

Under the potential agreement, the total consideration could reach up to US$26,025,000 over five years. This includes US$1,525,000 in cash, US$750,000 in stock, an option for US$15,750,000 in stock or cash at Stardust Power’s election, and a work commitment of US$8M.

Non-Refundable Payment

Stardust Power has already paid a non-refundable sum of US$75,000 to Usha Resources as per the LOI. The LOI is non-binding, except for Usha’s agreement to not engage with any other party concerning the Project until September 2024.

Conditions and Approvals

The transaction is subject to several conditions, including Stardust Power’s satisfactory due diligence, the negotiation and execution of definitive agreements, and approval from the TSX Venture Exchange. There is no guarantee that these conditions will be satisfied.

Stardust Power’s Lithium Refinery

Stardust Power is developing a lithium refinery in Muskogee, Oklahoma, designed to produce up to 50,000 tons per annum of battery-grade lithium carbonate (BGLC). This refinery aims to support lower carbon energy independence for the United States and cater primarily to the electric vehicle (EV) market.

Future Plans

Deepak Varshney, CEO of Usha commented, “The development of the Jackpot Lake Lithium Brine Project is a key focus for our company. We demonstrated significant potential in 2023 and look forward to further progress this year.” He added, “Usha’s strategy includes the acquisition and monetization of undervalued assets, and we are exploring advanced-stage copper and gold projects to add shareholder value.”

Finder’s Fee

A finder’s fee will be paid to 2818390 Ontario Corp for assisting with the proposed sale. The fee structure includes 10% on the first $300,000, 7.5% on amounts between $300,000 and $1,000,000, and 5% on the value exceeding $1,000,000 from the transaction.

Jackpot Lake Lithium Brine Property

Usha’s Jackpot Lake Lithium Brine Project is located in Clark County, 35 kilometers northeast of Las Vegas, Nevada. The project comprises 442 mineral claims over 8,714 acres. The geological setting is similar to Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America since 1966.

Qualified Person

The technical content of this news release has been reviewed and approved by Deepak Varshney, P.Geo., a qualified person under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Usha Resources Ltd.

Usha Resources Ltd. is focused on the development of quality lithium metal properties that have high-upside and expansion potential. Based in Vancouver, BC, the company’s diversified portfolio includes the Jackpot Lake lithium brine project in Nevada and the White Willow lithium pegmatite project in Ontario.

About Stardust Power Inc.

Stardust Power Inc. is a development-stage manufacturer and refiner of battery-grade lithium products. The company is developing a lithium refinery in Muskogee, Oklahoma, with an anticipated annual capacity of 50,000 tonnes. Stardust Power is expected to become publicly traded on Nasdaq under the ticker symbol “SDST” through a business combination with Global Partner Acquisition Corp II (NASDAQ:GPAC).

Disclaimer:
The content presented on this page has not been manually verified by our team. While we strive to ensure accuracy, we cannot guarantee the validity, completeness, or timeliness of the information provided. Always consult with appropriate professionals or sources before making any decisions based on this content.



The image is randomly selected and doesn’t necessarily represent the company or the news below.

Click here for more Company News