27th Aug 2019 15:35
(Alliance News) - Two Shields Investments PLC on Tuesday said it has signed an agreement to sell all of its Mali-based lithium permits and licences.
The investment company has signed two binding heads of agreement with Australian firm Leopard Lithium Pty Ltd to sell interests in Nashwan Holdings Ltd and Mansa Lithium Inc.
Two Shields directly holds a 30% stake in Nashwan, and indirectly holds 40% of Mansa through its 40% holding of Xantus Inc, the parent company of Mansa.
Under the agreement, Two Shields will receive consideration of 531 shares in Leopard Lithium, representing a 26.5% shareholding. The company continues to retain its 40% holding in Xantus which owns four lithium exploration permits in Niger.
Two Shields said it has no intention to provide further funding to exploration activities in Niger at this stage and is seeking partners to sell or farm out the assets.
Nashwan recorded a loss of USD10,668 in year ended March 31, 2018, while Xantus posted a loss of USD15,000 in the same financial year.
"The signing of these binding Heads of Agreement represents further progress from the Two Shields board in delivering on its stated strategy of divesting its legacy commodity-based assets. This will further enable the board to concentrate its efforts and cash resources on creating value from our portfolio of high growth, disruptive, technology based investments that form the core of strategic focus moving forward, said Two Shields Chair Andrew Lawley.
Shares in Two Shields were up 3.6% at 0.16 pence each.
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