BCC Completes Technical Due Diligence and Provides Update

MetalsTech Limited (MTC or the Company) provides the following update in respect of the $1.8 million funding deal (Investment) with leading chemical producer Wuxi Baichuan Chemical Industry Co Ltd (BCC).

The Company is pleased to advise that BCC has completed and is satisfied with its technical due diligence and has improved its investment offer through a variation to the binding agreement as announced 26 October 2017. The amendment to the agreement is in line with terms of MTC’s recent $3 million funding deal with leading battery manufacturer Dynavolt Renewable Energy Technology Co Ltd (Dynavolt), see ASX announcement 6 December 2017.

Highlights

•    BCC satisfied with technical due diligence investigations

•    BCC investment terms improved through replacement of the previously guaranteed project-level option with a requirement that BCC increases its share ownership to >12.5% through on-market and off-market share acquisitions to earn:

o    a right to participate in placements for 12 months to maintain ownership position
o    a right to match any project-level investment by a third party within 12 months up to 10% project-level interest

•    Investment remains subject to completion of the transfer of certain project tenements into MTC subsidiaries with transfers already underway

•    BCC afforded an extension of time to complete the Investment to within 20 business days of completion of the relevant tenement transfers

•    MTC believes the outstanding tenement transfers will be complete before the end of this month

•    MTC currently funded to commence further drilling at Cancet and Adina Lithium projects, with on-ground works commencing late January
Commenting on the strategic funding deal, Executive Chairman of MetalsTech, Mr Russell Moran stated:

“We are grateful for the hard work that Wuxi Baichuan has been applying towards facilitating what will be the first stage of a strategic relationship with our Company. The parties have agreed to amend the terms of the investment to provide incentives to Wuxi Baichuan for increasing its ownership position through on-market purchases in keeping with comparable incentives under our investment arrangement with Dynavolt. This as a win-win for all parties and we look forward to Wuxi Baichuan and Dynavolt supporting us in our development strategy.”

The full ASX announcement can be viewed by CLICKING HERE