GreenBank Capital (CSE:GBC) Inc reports its portfolio company Ubique Minerals Limited has entered into a non-binding memorandum of understanding (MOU) to earn in up to 80% of the shares of Alumina Ventures Ltd
The latter is the sole owner of the Port Loko Bauxite deposit as well as the partially developed mine in Sierra Leone.
In its merchant banking capacity, GreenBank Capital assisted Ubique Minerals in its public listing on the CSE in September of 2018 and has since maintained a significant interest in Ubique.
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GreenBank also made an investment in the base metals company purchasing C$200,000 units during the private placement in exchange for four million hard dollar units priced at $0.05 per unit.
Each unit consists of a share plus a whole warrant, with each whole warrant being exercisable at a price of $0.075 per common share for a period of 24 months from the date of issuance.
In relation to the MOU today, Ubique will acquire the large-scale mining license (ML10-2021) covering the Port Loko Bauxite project.
First developed by SierraMin, The Port Loko Bauxite project was advancing to production between 2016- 2020 when it was acquired by Alumina in May 2021.
A pilot project for the mine was underway when COVID-19 halted operations in 2020. Alumina then acquired all of SierraMin assets in April 2021.
According to the statement, Ubique will have the option to earn a 51% stake in the Port Loko Bauxite project in Sierra Leone by spending a minimum of US$3 million on infrastructure and project costs in the Port Loko project and fulfilling a commercial production shipment.
From there Ubique can opt to invest another US$5 million and acquire an additional 29% of Alumina.
The statement also noted that Ubique will agree that the current shareholders of AVL will receive a 2.5% royalty and that both parties shall negotiate a buyback price and transfer US$25,000 to Alumina upon signing the MOU.
Moving forward, Alumina will grant Ubique 30 days exclusivity to the transaction to perform due diligence.
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