Greenwing Resources secures deal for San Jorge Project
Key points
- Greenwing Resources agreed non-binding commercial terms with Atana Elements for a staged partnership.
- Atana provides an initial US$800,000 equity investment and can spend US$15.3 million to earn a 37.5% project stake.
- Atana gains an option to purchase the remaining 62.5% interest in the project for US$125 million.
Greenwing Resources (ASX:GW1) has agreed non-binding terms with US-based Atana Elements for a staged strategic partnership at its San Jorge Lithium Brine Project in Argentina.
The agreement follows a competitive strategic investor process to establish a pathway towards completing a preliminary feasibility study.
The initial terms grant Atana a three-month exclusivity period following a US$300,000 initial payment, of which US$150,000 is non-refundable.
Atana will subscribe for an initial US$800,000 equity placement at a 15% premium to the 25-day volume-weighted average price.
Under the staged structure, Atana will fund US$15.3 million in project expenditure to earn $125 million.
Following the announcement, the Greenwing Resources share price was unchanged at $0.85.
The company stated that the transaction aligns its lithium asset with the US economy during ongoing critical mineral supply chain initiatives.
Greenwing also retains full ownership of its Que River Polymetallic Project in Tasmania and the Graphmada Graphite Mine in Madagascar.
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