European lithium development company Savannah Resources announced that its subsidiary AME East Africa Limited has signed a Binding Heads of Agreement with MRG Metals Limited in relation to an option agreement under which MRG could acquire Mining Concession 9735C in Mozambique, owned by the Company's subsidiary Matilda Minerals. Key aspects of the Proposed Transaction include: · MRG is given an exclusive 45-day due diligence period commencing on 8 November 2022 ('Due Diligence' and 'Due Diligence Period' respectively) to validate all relevant costs, technical aspects of the Licence and any legal, regulatory, tax or commercial matters. · On completion of the Due Diligence Period, if MRG chooses to proceed with the Proposed Transaction, the parties will execute an Option Agreement providing MRG a 16-month option period (the 'Option' and 'Option Period' respectively), which can be extended by mutual consent. · During the Due Diligence Period, AME will take all reasonable steps to prepare a draft Option Agreement with which to negotiate with MRG in anticipation of it being entered into by the parties within 5 working days following the expiry of the Due Diligence Period, or earlier by agreement between both parties. · During the Option Period, MRG will fund the estimated US$0.5m to complete a Work Programme by mid-October 2023. The Work Programme is focussed on commitments necessary to satisfy Instituto Nacional de Minas ('INAMI') but may include infill/extension drilling to improve resource quality and quantity. · During the Option Period, MRG may exercise the Option to acquire ML 9735C
European lithium development company Savannah Resources announced that its subsidiary AME East Africa Limited has signed a Binding Heads of Agreement with MRG Metals Limited in relation to an option agreement under which MRG could acquire Mining Concession 9735C in Mozambique, owned by the Company's subsidiary Matilda Minerals. Key aspects of the Proposed Transaction include: · MRG is given an exclusive 45-day due diligence period commencing on 8 November 2022 ('Due Diligence' and 'Due Diligence Period' respectively) to validate all relevant costs, technical aspects of the Licence and any legal, regulatory, tax or commercial matters. · On completion of the Due Diligence Period, if MRG chooses to proceed with the Proposed Transaction, the parties will execute an Option Agreement providing MRG a 16-month option period (the 'Option' and 'Option Period' respectively), which can be extended by mutual consent. · During the Due Diligence Period, AME will take all reasonable steps to prepare a draft Option Agreement with which to negotiate with MRG in anticipation of it being entered into by the parties within 5 working days following the expiry of the Due Diligence Period, or earlier by agreement between both parties. · During the Option Period, MRG will fund the estimated US$0.5m to complete a Work Programme by mid-October 2023. The Work Programme is focussed on commitments necessary to satisfy Instituto Nacional de Minas ('INAMI') but may include infill/extension drilling to improve resource quality and quantity. · During the Option Period, MRG may exercise the Option to acquire ML 9735C
