Cloudbreak Discovery PLC (LSE:CDL, OTC:CDBDF) has signed an exploration agreement for its proprietary database of lithium targets in Texas.
Smackover Resources, a subsidiary of Lonestar Lithium, has bought the proprietary information, which also includes regional modelling and data compilation across the eastern part of the US state.
Terms of the sale are for Cloudbreak to receive two million shares in Lonestar, USD$25,000 each time a qualifying transaction property (QTPs) is generated from the database and a 0.5% royalty on lithium produced from each QTP.
The agreement runs for three years.
Andrew Male, Cloudbreak's interim chief executive, said: "This exploration agreement is a good example of the type of transactions Cloudbreak has completed in the past and will continue to do with a sector of its asset base.
“It took considerable time and effort to compile this database and being able to sell this on to Lonestar demonstrates the possible valuation accretion by doing this type of business."