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.