SensOre Ltd (ASX: S3N) has acquired 70% interest in Exploration Ventures AI Pty Ltd (EVAI) that it previously did not own, including the highly prospective Abbotts North lithium project in Western Australia.
The SensOre board has decided on strategic division of its exploration and technology assets by privatizing its technology assets. SensOre has also proposed a rebranding as Premier1 Lithium Limited, emphasizing its lithium and critical minerals exploration, pending shareholder consent.
The agreement coincides with a well-supported A$3M placement to sophisticated and institutional investors to fund Premier1 Lithium and drilling of the Abbotts North project, which has assays up to 1.25% Li2O, as well as the wider lithium portfolio.
The acquisition in EVAI from its joint venture partner Deutsche Rohstoff AG is for 34.3M shares in SensOre. Should the acquisition and the A$3M share issue be approved by SensOre shareholders, Deutsche Rohstoff will hold 19.9% of SensOre and Deutsche Rohstoff AG’s VP Geology, Anja Ehser, will join the board as a non-executive director.
The acquisition includes three tranches of options: (1) consists of 6M options exercisable at A$0.075; (2) consists of 8M options exercisable at A$0.088; and (3) consists of 12M options exercisable at A$0.100. All tranches have an expiry of three years from the grant date.
The new technology company will operate as an independent, unlisted entity with new venture capital as discussions progress with a number of parties. The expectation is that once regulatory and shareholder approvals are in place, the in-specie distribution of shares in the technology company will be followed by the share issues to DR and placement investors.
Current shareholders are entitled to the in-specie distribution of shares in the technology company and will retain their interest in the listed company to be renamed Premier1 Lithium. Premier1 Lithium will retain certain usage rights to the technology which has been instrumental in identifying the company’s existing projects.