Usha Resources Ltd (TSX-V:USHA) has told investors that the option deal it struck in March this year with Ares Strategic Mining (TSX-V:ARS) to acquire the Jackpot Lake lithium project in Nevada, USA, has been amended.
The drill-ready Jackpot Lake property sits in Clark County, 35 kilometres (km) northeast of Las Vegas, and spans 140 claims for 2,800 acres.
Usha said a 5 km by 2 km anomaly has already been successfully delineated within a closed basin that suggests the presence of a highly concentrated lithium brine. Notably, the geology is similar to Albemarle's Silver Peak Nevada lithium mine which has operated continuously since 1966, and Iconic Mineral's Bonnie Claire project, which recently released a preliminary economic assessment (PEA) that indicated a 40-year mine with an after-tax net present value (NPV) of $1.5 billion.
Following a preliminary review completed by the TSX Venture Exchange of the option deal, Usha and Ares have agreed to reduce the maximum number of shares to be potentially issued for the second and third payments to 1.875 million from 3 million previously. The consideration for each payment remains the same at $225,000 in cash or shares.
Other terms include $75,000 payable within five days from receiving approval from the exchange, and $500,000 payable in shares within five days from the date of exchange approval, to be issued at a deemed value according to the 10-day volume-weighted average price (VWAP).
Usha noted that at Jackpot Lake 129 core samples collected by the United States Geological Survey (USGS) showed an average lithium value of 175 parts per million (ppm) with a high of 550 ppm.
Gravitational and controlled source audio magnetotellurics/magnetotellurics (CSAMT/MT) survey results show a large consistent body of very low resistivity - consistent with highly concentrated brine behavior - throughout the property, predominantly above bedrock depths of 625 meters (m), the company also highlighted.
Usha said it aims to complete drilling both shallow and deep holes to test the targets outlined by the CSAMT survey at possible higher concentration brine zones with the goal of completing am NI 43-101 resource estimate by the fourth quarter of 2022.
Vancouver headquartered Usha has a portfolio of strategic properties, which comprise Jackpot Lake, a lithium project in Nevada, Nicobat, a nickel‑copper‑cobalt project in Ontario along with Lost Basin, a gold-copper project in Arizona.
Contact the author at giles@proactiveinvestors.com