GBML Battery announces improved terms of is Letter of Intent to Acquire up to 90% of the North-West Leinster Lithium Property in Ireland
www.gbml.ca | 880- 580 Hornby Stree t | Vancouver, BC , V6C 3B6
GBML Battery announces improved terms of is Letter of Intent to Acquire up to 90% of
the North-West Leinster Lithium Property in Ireland
(Vancouver, British Columbia, April 21, 2020) – GBML Battery Metals Ltd. (TSX-V: GMBL,
Frankfurt: REZ, OTCQB: REZZF) (“the Company” or “GBML”) announce that it has entered
into an amended Letter of Intent (the “LOI”) with LRH Resources Ltd (LRHR), a n arms length
non-related private exploration company. The LOI re-defines the option agreement as previously
announced on October 28, 2018, in which GBML has the option to acquire up to 90% of the North
West Leinster Lithium Property in the Republic of Ireland.
GBML continues to have the right to exercise three options (the “Options”) to acquire up to 90%
of the of the NWL Property as follows:
I.) Option one: GBML can earn a 17.5% equity interest in the project by spending: (i)
€85,000 on expenditures on the PROJECT by October 12 th, 2022. This is the required
property spend separate from the license fees. (ii) up to €6,500 in connection with all such
license charges, fees and rents as may be required to keep the project in good standing.
The company shall continue to liaise with the governing license authority; the Exploration
and Mining Division of the Department of Communications, Climate Action and the
Environment in relation to restrictions on ongoing exploration activity, vis a -vis
potentially any effect that this may have on the required minimum exploration
expenditure to be incurred, as the result of the Covid-19 pandemic.
II.) Option two: In the event that GBML exercises the 1st Option Earn-In, GBML can earn a
further 37.5% interest (for a cumulative 55% interest in total) in the project by: (i)
providing notice to LRHR of exercise of the 1st Option Earn- In (ii) spending a further
€500,000 on expenditures on the Project within two years following receipt by LRHR of
the 1st Option Notice; and (iii) paying LRHR €50,000 in either cas h or common shares
of GBML, at the option of GBML, with there being a minimum cash component of
€5,000. Prior to the exercise of the 2nd Option Earn- In, GBML shall have a tag -along
right such that if LRHR sells its share of the project (and GBML does not e xercise its
ROFR), the purchaser of LRHR’s interest in the project will have to acquire GBML’s
interest in the PROJECT under equivalent pro rata terms. ; and
III.) Option three: In the event that GBML exercises the 2nd Option Earn-In, GBML can earn
a further 3 5% interest (for a cumulative 90% interest in total) in the project by: (i)
providing LRHR with the 2nd Option Notice; (ii) spending a further €1,000,000 on
expenditures on the Project within two years following receipt by LRHR of the 2nd
Option Notice; and (iii) paying LRHR €200,000 in either cash or GBML Shares, at the
option of GBM, provided at least €20,000 will be payable in cash.
www.gbml.ca | 880- 580 Hornby Stree t | Vancouver, BC , V6C 3B6
Upon GBML earning its 55% interest in the project pursuant to the terms of the second option, a
joint venture shall be formed between GBML and LRH. Should LRH’s interest be diluted below
10%, its interest shall convert to a 2% gross proceeds royalty (the “GPR”) . GBML shall have a
buy-back right for a specified period on 1% of LRH’s 2% GPR by paying LRH €1,000,000 in
either (i) cash or (ii) subject to receipt of the approval of the TSX Venture Exchange or such other
applicable exchange, a combination of a minimum of 10% in cash and the balance in common
shares of GBML at the applicable market price.
The option agreement remains subject to the approval of the TSX Venture Exchange. GBML may
extend the required time frame to complete any earn in period for up to an a dditional 24 months,
by making a cash payment to LRH of €25,000 per 12 months and maintaining a minimum
expenditure of €25,000 per 12 months.
GBML has completed a due diligence program which included a property wide reconnaissance
ground-truthing and pros pecting effort. This work focused on areas with anomalous
Li identified from previous historical Government regional stream sediment and soil sampling
surveys.
Spodumene-bearing pegmatite float and anomalous Li aplite float boulders were located in six
localities. Follow up surveys by LRHR through Aurum Exploration Limited at one of these was
undertaken at the Aghavannagh target area - where large angular boulders (>1.0m) with up to
1.78% (Li 2O) in spodumene bearing pegmatite were discovered at surface. F ollow-up work
consisted of detailed prospecting, soil sampling at multiple horizons and ground magnetics. For
more details on the sampling results please see the press release of January 29th, 2019.
This has resulted in the delineation of a 600m by 150m zone of pegmatite boulder distribution
(spodumene bearing at the south-west end), and soil and deep overburden geochemistry anomalous
in Li, Cs and Ta, each coincident with a NE-SW trending magnetic low; together these features
have identified a target zone for drill testing.
Detailed surveys of the other prospects identified on the block remain to be tested and will be the
focus of field surveys in due course. The NWL Property is located approximately 35km southwest
of Dublin. The project is centered within the Leinster Granite Massif along strike and within an
analogous geological setting to that which hosts the Jiangxi Ganfeng Lithium Co. Ltd. \
International Lithium Company’s Avalonia Project. The Avalonia Project is centered
approximately 60km further to the south at Moylisha and Aclare, County Carlow, where similarly
anomalous lithium-bearing pegmatites and aplites were emplaced along the eastern and southern
margins of the Devonian aged Caledonide granites, in structural contact, with Lower Palaeozoic
meta-sediments.
www.gbml.ca | 880- 580 Hornby Stree t | Vancouver, BC , V6C 3B6
PPM Li x 2.153 = Li20
www.gbml.ca | 880- 580 Hornby Stree t | Vancouver, BC , V6C 3B6
All scientific and technical information in this press release has been prepared under the
supervision of EuroGeol Vaughan Williams M.Sc. P.Geo, a Principal of Aurum Exploration
Services who are currently provide exploration services to LRHR and a “Qualified Person” within
the meaning of National Instrument 43-101.
About GBML Battery Metals Ltd.
About GBML Battery Metals Ltd. GBML Battery Metals Ltd. is a mineral exploration company
with a focus on metals t hat make up and support the rapid evolution to battery power. GBML
Battery Metals Ltd. common shares are listed on the TSX Venture Exchange (GBML) , OTCBB
(REZFF) and Frankfurt (REZ). GBML Battery Metals Ltd. currently has two projects: 1) an option
to acquire up to 90%% of the North-West Leinster Lithium property in Ireland, and 2) a 55% stake
in Peru based Lara copper property, which has over 10,000 metres of drilling. More information
about the Company is available on its issuer profile on SEDAR at www.se dar.com or
www.gbml.ca.
Michael Murphy BA, MBA, MSC., ICD President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and/or accuracy
of this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward- looking statements that
involve substantial known and unknown risks and uncertainties. These forward-looking statements
are subject to numerous risks and uncertainties, certain of which are beyond the control of the
Company, including, but not limited to the potential for gold and/or lithium at any of the
Company’s properties, the prospective nature of any claims comprising the Company’s property
interests, the impact of general economic conditions, industry conditions, dependence upon
regulatory approvals, uncertainty of sample results, timing and results of future exploration, and
the availability of financing. Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking statements.