Plymouth Minerals enters deal with Reabold for San Jose lithium

Company News

by David Chau

Reabold Resources Plc, which is listed on the London Stock Exchange, has agreed to invest in Plymouth Minerals Ltd’s (ASX:PLH) San Jose lithium project.

Reabold will pay $500,000 cash to acquire an approximately 2% stake in Plymouth’s subsidiary, Tonsley Mining Pty Ltd, which holds Plymouth’s Spanish assets.

Tonsley has the right, at its election, to acquire 75% of the San Jose project, and a mechanism to raise its stake to 100%. There is also an option for the $500,000 funding to be returned to Reabold after an agreed period of time.

As for Plymouth, it has the right to initially earn 50% from San Jose by submitting a Mining Licence Agreement before October, and expending at least €1.5 million.

This morning, Plymouth Minerals shares opened 4.55% higher at 23 cents.

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