7F.01 The purpose(s) for which the entity is issuing the securities
LIT has executed a commercialisation agreement with Deutsche Rohstoff AG. The agreement provides for the issue of an exclusive LieNA® licence in Europe, subject the conditions listed in the ASX release dated 29 April 2021.
The ASX release: On 28 April 2021, the Company executed a commercialisation agreement with Deutsche Rohstoff AG (‘DRAG’), a German natural resources holding and investment company. The agreement provides for the issue of an exclusive LieNA®licence in Europe, subject to DRAG: subscribing for 3,125,000 fully paid ordinary shares in the capital of Lithium Australia for A$250,000 at commencement; subscribing for A$400,000 of fully paid ordinary shares in the capital of Lithium Australia priced at 125% of the 30-day VWAP for those shares on the day that construction of the pilot plant is completed; paying Lithium Australia A$400,000 on delivery of a positive, European-based prefeasibility study, and paying a 2% gross royalty on product generated through application of the LieNA®process in Europe.
So, in answer to your question the company made $250,000 today and will continue to rake more in as the European plant is completed, then a feasibility study completed.
Basically, the German's wanted a share of the company in order to build the company.
LIT Price at posting:
12.3¢ Sentiment: Buy Disclosure: Held
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