Bradda Head Holdings Limited is a lithium exploration Group focused on developing its high quality projects in the USA. Through its subsidiaries, Zenolith (USA) LLC and Minera Salmuera, SA de C.V., the Group holds a 55% stake in lithium brine, pegmatite and clay projects located in strategic positions in two world class lithium belts.
During January 2018, Bradda Head Holdings Limited executed a share purchase agreement with Life Science Developments Limited (“LIFE”), a previously AIM listed company. As part of the transaction, Bradda Head Limited shareholders sold 100% of their interest in Bradda Head Limited, in return for a combined 90% interest in LIFE. Following the transaction, LIFE changed its name to Bradda Head Holdings Limited.
On 2 March 2017, the subsidiary Bradda Head Holdings Limited entered into a Joint Venture Agreement with Zenith Minerals Limited, an exploration company listed in Australia (ASX:ZNC). The Joint Venture Agreement was updated during February 2018. A summary of the significant terms and conditions of the Agreement are as follows:
- Bradda Head reimburses US$500,000 to Zenith Minerals of incurred costs upon completion of the Joint Venture Agreement, and in return is granted an initial interest of 55% in all the Tenements;
- Agreement relates to existing Tenements, any Tenements replaced, any new tenements acquired, any new applications or mineral rights acquired by parties within the Americas within three years of the effective date of the Agreement;
- Zenith Minerals warrants that all Tenements are in good standing and free from encumbrances;
- Bradda Head acquired the rights to explore, exploit and develop the Tenements subject to the successfully incurring minimum Expenditure of US$5m on the Tenements (“First Earnings Amount”) within a four year period from signing the Agreement, being the “Initial Period”. Expenditure includes all costs and expenses including but not limited to capital costs, costs of exploration, operations and other works, and costs of maintaining, renewing tenements;
- During the Initial Period, Bradda Head is liable for maintaining licenses in good standing, managing exploration activities, statutory reporting, quarterly reporting to Zenith Minerals, and obtaining $10m public liability insurance;
- Zenith Minerals shall supply the services of Mick Clifford (Zenith Minerals Managing Director) up to a maximum of one week per month for 42 months from the Agreement effective date, with these costs counting towards the minimum First Earnings Amount. Bradda Head will reimburse Zenith Minerals for these costs;
- Upon Bradda Head notifying Zenith Minerals of meeting the First Earnings Amount (“1st Earning Date”), Zenith Minerals may elect to form a Joint Venture and contribute to on-going expenditures;
- If neither party elects to form a Joint Venture, Bradda Head shall have right to earn-in and acquire a 70% interest in the Tenements by free-carrying Zenith Minerals to a Preliminary Feasibility Study (“PFS”) on at least two tenements within five years of 1st Earning Date (“2nd Earning Date”);
- Bradda Head will earn a 70% interest in any Tenement on which it completes a PFS within two years of 1st Earning Date (even if it fails to complete second PFS);
- Bradda Head and Zenith Minerals to incorporate a Joint Venture from 2nd Earning Date.