Usha Resources Congratulates Stardust Power on NASDAQ Listing, Provides Update on LOI to Sell Up to 90% of the Jackpot Lake Project for Total Consideration of up to US$26,025,000
Usha Resources (TSXV: USHA) (OTCQB: USHAF) congratulates Stardust Power on its NASDAQ listing, a important step for executing definitive agreements related to the Jackpot Lake Lithium Brine Project. Usha has granted Stardust Power the right to earn up to a 90% interest in the project for US$26,025,000 over five years. The deal includes cash payments, stock issuance, and work commitments. Upon completion, Usha would retain a 10% stake and a 2% NSR. Usha's CEO, Deepak Varshney, emphasized the company's focus shift towards copper and critical metals, highlighting their strong financial position with $1.2M in working capital. Stardust Power aims to develop a lithium refinery in Oklahoma, potentially producing up to 50,000 tons of battery-grade lithium carbonate annually.
Usha Resources (TSXV: USHA) (OTCQB: USHAF) congratula Stardust Power per la sua quotazione al NASDAQ, un passo importante per l'esecuzione di accordi definitivi legati al Jackpot Lake Lithium Brine Project. Usha ha concesso a Stardust Power il diritto di acquisire fino al 90% di interesse nel progetto per 26.025.000 USD nell'arco di cinque anni. L'accordo include pagamenti in contanti, emissione di azioni e impegni lavorativi. Al termine, Usha trattiene una partecipazione del 10% e un 2% di NSR. Il CEO di Usha, Deepak Varshney, ha sottolineato il cambiamento di focus dell'azienda verso il rame e i metalli critici, evidenziando la loro solida posizione finanziaria con 1,2 milioni di dollari di capitale circolante. Stardust Power punta a sviluppare una raffineria di litio in Oklahoma, con una potenziale produzione fino a 50.000 tonnellate di carbonato di litio di grado batteria all'anno.
Usha Resources (TSXV: USHA) (OTCQB: USHAF) felicita a Stardust Power por su cotización en NASDAQ, un paso importante para llevar a cabo acuerdos definitivos relacionados con el Jackpot Lake Lithium Brine Project. Usha ha otorgado a Stardust Power el derecho a ganar hasta un 90% de interés en el proyecto por 26.025.000 USD durante cinco años. El acuerdo incluye pagos en efectivo, emisión de acciones y compromisos laborales. Al finalizar, Usha retendrá una participación del 10% y un 2% de NSR. El CEO de Usha, Deepak Varshney, enfatizó el cambio de enfoque de la empresa hacia el cobre y los metales críticos, destacando su sólida posición financiera con 1,2 millones de dólares en capital de trabajo. Stardust Power tiene como objetivo desarrollar una refinería de litio en Oklahoma, con una producción potencial de hasta 50.000 toneladas de carbonato de litio de grado batería anualmente.
Usha Resources (TSXV: USHA) (OTCQB: USHAF)는 Stardust Power의 NASDAQ 상장에 축하를 보냅니다. 이는 Jackpot Lake Lithium Brine Project와 관련된 확정 계약을 실행하는 중요한 단계입니다. Usha는 Stardust Power에게 5년 동안 26,025,000 USD로 프로젝트에서 최대 90%의 지분을 획득할 수 있는 권리를 부여했습니다. 이 거래에는 현금 지불, 주식 발행 및 작업 약정이 포함됩니다. 완료 시, Usha는 10%의 지분과 2%의 NSR을 보유하게 됩니다. Usha의 CEO인 Deepak Varshney는 회사의 초점이 구리 및 중요 금속으로 이동하고 있다는 점을 강조하며 120만 달러의 운영 자본을 보유한 강력한 재정 상태를 강조했습니다. Stardust Power는 오클라호마에 리튬 정제소를 개발하여 연간 최대 50,000톤의 배터리 등급 리튬 탄산염을 생산할 가능성을 가지고 있습니다.
Usha Resources (TSXV: USHA) (OTCQB: USHAF) félicite Stardust Power pour son inscription au NASDAQ, une étape importante pour la mise en œuvre des accords définitifs liés au Jackpot Lake Lithium Brine Project. Usha a accordé à Stardust Power le droit de gagner jusqu'à 90% d'intérêt dans le projet pour 26 025 000 USD sur cinq ans. L'accord inclut des paiements en espèces, des émissions d'actions et des engagements de travail. À l'issue de cet accord, Usha conservera une participation de 10% et un 2% de NSR. Le CEO d'Usha, Deepak Varshney, a souligné le changement d'orientation de l'entreprise vers le cuivre et les métaux critiques, mettant en avant leur solide position financière avec 1,2 million de dollars de fonds de roulement. Stardust Power vise à développer une raffinerie de lithium en Oklahoma, pouvant potentiellement produire jusqu'à 50 000 tonnes de carbonate de lithium de qualité batterie par an.
Usha Resources (TSXV: USHA) (OTCQB: USHAF) gratuliert Stardust Power zu seiner NASDAQ-Listung, einem wichtigen Schritt zur Ausführung definitiver Vereinbarungen im Zusammenhang mit dem Jackpot Lake Lithium Brine Project. Usha hat Stardust Power das Recht eingeräumt, in den nächsten fünf Jahren bis zu 90% am Projekt für 26.025.000 USD zu erwerben. Der Deal umfasst Barzahlungen, Aktienausgaben und Arbeitsverpflichtungen. Nach Abschluss behält Usha eine 10%ige Beteiligung sowie eine 2%ige NSR. Usha’s CEO, Deepak Varshney, betonte den Fokuswechsel des Unternehmens hin zu Kupfer und kritischen Metallen und hob die starke Finanzlage mit 1,2 Millionen Dollar an Betriebskapital hervor. Stardust Power plant den Aufbau einer Lithiumraffinerie in Oklahoma, die potenziell bis zu 50.000 Tonnen batteriefähigen Lithiumcarbonat pro Jahr produzieren könnte.
- Potential to receive up to US$26,025,000 for 90% interest in Jackpot Lake project
- Retention of 10% stake and 2% NSR in the project after full earn-in
- Strong financial position with $1.2M in working capital
- Diversification into copper and critical metals with the Southern Arm Copper-Gold VMS Project acquisition
- Transaction is subject to due diligence and definitive agreement execution
- No guarantee of completion of the definitive agreement or satisfaction of conditions
Insights
This news, while seemingly significant, requires a cautious approach. The Letter of Intent (LOI) between Usha Resources and Stardust Power for the Jackpot Lake Lithium Brine Project is non-binding, with only a
The structure of the deal is complex, involving a mix of cash, stock and work commitments. If fully executed, it would leave Usha with a
Usha's pivot towards copper and other critical metals, backed by a
Investors should approach this news with caution. While the potential upside is significant, the numerous conditions and the non-binding nature of the LOI mean that the deal's realization is far from guaranteed. The market's reaction to this news should be monitored closely in the coming days.
The Jackpot Lake Lithium Brine Project's geological setting, described as similar to Albemarle's Silver Peak Nevada Lithium Mine, is intriguing. Silver Peak has been in continuous operation since 1966, which speaks to the potential longevity of such projects. However, it's important to note that geological similarity doesn't guarantee similar resource quality or quantity.
The project's modelling indicates a shallow target, predominantly above 600 meters, with a thickness of about 450 meters. This is potentially favorable for extraction economics, as shallower resources generally require less capital-intensive mining methods. The total basin size of 10,900 acres, with Usha controlling 8,714 acres, suggests significant exploration potential.
However, investors should be aware that the project is still in early stages. No resource estimates or economic studies have been mentioned, which are important for determining the project's viability. The transition from exploration to a producing mine is a long, capital-intensive process with numerous technical and regulatory hurdles.
Stardust Power's plans for a lithium refinery in Oklahoma, while not directly related to Usha's assets, could potentially provide a strategic advantage if the Jackpot Lake project advances. However, this is speculative at this point and depends on many factors, including the success of both Stardust's refinery plans and Usha's exploration efforts.
Overall, while the geological setting appears promising, much more work is needed to determine the project's true potential and economic viability.
Usha entered into a Letter of Intent (the "LOI") with Stardust Power dated March 15, 2024 granting Stardust Power the right to earn up to a
A non-refundable sum of
Stardust Power's listing on the NASDAQ is a necessary condition for the execution of definitive agreements (the "Definitive Agreement") pursuant to the LOI.
Upon completion of the full earn-in of
Deepak Varshney, CEO of Usha commented: "We congratulate Stardust Power on its listing and its subsequent success which demonstrates the strength of their value proposition."
Mr. Varshney continued: "Our strategic vision at Usha has always been to acquire and monetize undervalued assets. With the recent acquisition of the Southern Arm Copper-Gold VMS Project from Abitibi Metals, our focus will now shift towards copper and other critical metals. With working capital of approximately
Stardust Power is developing a lithium refinery facility in
The LOI is non-binding, other than Usha's agreement to not engage or communicate with any other party with respect to the Project through September 2024. The transaction is subject to the satisfaction of a number of conditions, including Stardust Power's satisfactory commercial and legal due diligence, the negotiation and execution of the Definitive Agreement and the approval of the TSX Venture Exchange. The Company cautions that there is no guarantee that the Definitive Agreement will be completed or that the other conditions will be satisfied.
Jackpot Lake Lithium Brine Property
USHA's Jackpot Lake Lithium Brine Project is located within
The Project's geologic setting is similar to that of Albemarle's Silver Peak Nevada Lithium Mine, the only producing lithium mine in
Modelling indicates that the Project target comprises the entirety of the Company's core optioned claim block (2,800 acres; 11.3 km2) and is open in all directions for expansion. The target is shallow, predominantly above bedrock depths of 600 meters, and is approximately 450 meters thick. The total basin within which the target is situated is estimated to be approximately 10,900 acres of which the Company now controls 8,714 acres.
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Deepak Varshney, P.Geo., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality lithium metal properties that are drill-ready with high-upside and expansion potential. Based in
USHA RESOURCES LTD.
"Deepak Varshney" CEO and Director
For more information, please call 778-899-1780, email info@usharesources.com or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Stardust Power Inc.
Stardust Power Inc. is a development stage manufacturer and refiner of battery-grade lithium products designed to supply the EV industry and help secure America's leadership in the energy transition. Stardust Power is developing a strategically central lithium refinery in
Forward-looking statements:
This news release may include "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about entering into a Definitive Agreement and completion of the Jackpot Lake transaction with Stardust Power, strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information necessarily involve known and unknown risks, including, without limitation: Usha and Stardust entering into the Definitive Agreement; risks associated with general economic conditions; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks.
Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
For more information, please call 778-899-1780, email info@usharesources.com or visit www.usharesources.com.
SOURCE Usha Resources Ltd.
FAQ
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