Australia-based Birimian has signed a binding letter of intent (LoI) with Shandong Mingrui Group (Mingrui) to sell 100% interest of Bougouni Lithium Project in Mali.
Under the LoI, the transaction will carry a consideration of A$107.5m ($77.83m) in cash.
The LoI is subject to multiple conditions, which includes Mingrui to deposit A$10.75m by 20 January, once this amount has been received then the deal will become binding.
After receiving the deposit amount, Birimian shareholders need to approve the transaction.
Bougouni Lithium Project, located in southern Mali, hosts the Goulamina lithium deposit that has estimated mineral resources of 15.5Mt at 1.48% Li2O for 229,000t contained Li2O.
Both parties agreed that evaluation studies and drilling at the site will continue according to the developmental plan devised by Birimian.
The planned 10,000m drilling at Goulamina remains on schedule, with completion expected to be complete by late-January.
Under the LoI, Birimian will sale and transfer the rights of Torakoro permit to Mingrui. The Torakoro permit hosts the Goulamina deposit.
The initial deposit amount provided by Mingrui is non-refundable, except if Birimian fails to receive any necessary approval as required.
After 45 days from payment of the deposit amount, Mingrui will pay the remaining balance in cash with applicable taxes.
If all deal conditions are not met by 31 March, the LoI will be terminated. However, both parties can extend the termination date on mutual agreement.