VANCOUVER, BC, July 26,
2024 /CNW/ -- Usha Resources Ltd. ("USHA" or
the "Company") (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North
American exploration company, congratulates Stardust Power, Inc.
("Stardust Power", "SDST" and "SDSTW") on the completion of
its business combination with Global Partner Acquisition Corp II
and the listing of its shares of Class A common stock on the Nasdaq
Global Market ("Nasdaq").
Usha entered into a Letter of Intent (the "LOI") with
Stardust Power dated March 15, 2024
granting Stardust Power the right to earn up to a 90% interest
subject to a 2% Net Smelter Royalty ("NSR") in Usha's
Jackpot Lake Lithium Brine Project ("Jackpot Lake" or the
"Project") for total consideration of US$26,025,000 over five years.
A non-refundable sum of US$75,000
has been paid to Usha by Stardust Power pursuant to the LOI.
Stardust Power's listing on the NASDAQ is a necessary condition
for the execution of definitive agreements (the "Definitive
Agreement") pursuant to the LOI.
Upon completion of the full earn-in of US$26,025,000, which comprises payments totaling
US$1,525,000 cash, US$750,000 stock, US$15,750,000 stock or cash at Stardust Power's
election, and a work commitment of US$8,000,000, Usha would retain 10% of the
Project and a 2% NSR and would be carried in the Joint Venture
("JV") formed between Usha and Stardust Power until a formal
Decision to Mine is reached following completion of a Feasibility
Study. Stardust would be permitted to buy back 1% NSR for a cash
payment of US$7,500,000.
Deepak Varshney, CEO of Usha
commented: "We congratulate Stardust Power on its listing and its
subsequent success which demonstrates the strength of their value
proposition."
Mr. Varshney continued: "Our strategic vision at Usha has always
been to acquire and monetize undervalued assets. With the recent
acquisition of the Southern Arm Copper-Gold VMS Project from
Abitibi Metals, our focus will now shift towards copper and other
critical metals. With working capital of approximately $1.2M, Usha is in a strong financial position to
execute over the coming year and we look forward to our maiden
drill program at Southern Arm, particularly at "Hollywood", which has a ~1.8 km footprint that
is open along strike."
Stardust Power is developing a lithium
refinery facility in Muskogee,
Oklahoma, with capacity of producing up to 50,000 tons
per annum of battery grade lithium carbonate
("BGLC") once fully operational. Stardust
Power's battery-grade lithium refinery will be designed and
manufactured to foster lower carbon energy independence for
the United States. Stardust Power
seeks to become a sustainable, cost-effective supplier of BGLC,
primarily for the electric vehicle ("EV") market, through
the development of its innovative, large central refinery (the
"Facility") optimized for multiple inputs of different types
of lithium brine, including concentrated lithium brine, lithium
chloride, or technical and crude grade lithium feedstocks. Once
completed, Stardust Power expects to secure multiple sources of
feedstock from various lithium producers, with the Facility
becoming one of the largest lithium refineries in the United States.
The LOI is non-binding, other than Usha's agreement to not
engage or communicate with any other party with respect to the
Project through September 2024. The
transaction is subject to the satisfaction of a number of
conditions, including Stardust Power's satisfactory commercial and
legal due diligence, the negotiation and execution of the
Definitive Agreement and the approval of the TSX Venture Exchange.
The Company cautions that there is no guarantee that the Definitive
Agreement will be completed or that the other conditions will be
satisfied.
Jackpot Lake Lithium Brine Property
USHA's Jackpot Lake Lithium Brine Project is located within
Clark County, 35 kilometers
northeast of Las Vegas, Nevada,
and is comprised of 442 optioned and staked mineral claims that
total 8,714 acres (approximately 35.3 km2).
The Project's geologic setting is similar to that of Albemarle's
Silver Peak Nevada Lithium Mine, the only producing lithium mine in
North America, which has operated
continuously since 1966, where sediments from lithium–rich
surrounding source rocks accumulate and fill the deposit leading to
a potential concentration of lithium brine due to successive
evaporation and concentration events.
Modelling indicates that the Project target comprises the
entirety of the Company's core optioned claim block (2,800 acres;
11.3 km2) and is open in all directions for expansion.
The target is shallow, predominantly above bedrock depths of 600
meters, and is approximately 450 meters thick. The total basin
within which the target is situated is estimated to be
approximately 10,900 acres of which the Company now controls 8,714
acres.
Qualified Person
The technical content of this news release has been reviewed and
approved by Mr. Deepak Varshney,
P.Geo., a qualified person as defined by National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101").
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and
exploration company focused on the development of quality lithium
metal properties that are drill-ready with high-upside and
expansion potential. Based in Vancouver,
BC, Usha's portfolio of strategic properties provides
target-rich diversification and includes Jackpot Lake, a lithium
brine project in Nevada and White
Willow, a lithium pegmatite project in Ontario that is the flagship among its growing
portfolio of hard-rock lithium assets. Usha trades on the TSX
Venture Exchange under the symbol USHA, the OTCQB Exchange under
the symbol USHAF and the Frankfurt Stock Exchange under the symbol
JO0.
USHA RESOURCES LTD.
"Deepak Varshney" CEO and Director
For more information, please call 778-899-1780, email
info@usharesources.com or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About Stardust Power Inc.
Stardust Power Inc. is a development stage manufacturer and
refiner of battery-grade lithium products designed to supply the EV
industry and help secure America's leadership in the energy
transition. Stardust Power is developing a strategically central
lithium refinery in Muskogee,
Oklahoma with the anticipated capacity of producing up to
50,000 tonnes per annum of battery-grade lithium. Committed to
sustainability at each point in the process. Stardust Power is
expected to become a publicly traded company on Nasdaq under the
ticker symbol "SDST" via a planned business combination with Global
Partner Acquisition Corp II ("GPAC II") (NASDAQ: GPAC), a special
purpose acquisition company.
Forward-looking statements:
This news release may include "forward-looking information"
under applicable Canadian securities legislation. Forward-looking
information includes, but is not limited to, statements about
entering into a Definitive Agreement and completion of the Jackpot
Lake transaction with Stardust Power, strategic plans, future work
programs and objectives and expected results from such work
programs. Forward-looking information necessarily involve known and
unknown risks, including, without limitation: Usha and Stardust
entering into the Definitive Agreement; risks associated with
general economic conditions; inability to access sufficient capital
from internal and external sources, and/or inability to access
sufficient capital on favourable terms; and other risks.
Such forward-looking information reflects management's
current beliefs and are based on a number of estimates and/or
assumptions made by and information currently available to the
Company that, while considered reasonable, are subject to known and
unknown risks, uncertainties, and other factors that may cause the
actual results and future events to differ materially from those
expressed or implied by such forward-looking information. Readers
are cautioned that such forward-looking information are neither
promises nor guarantees and are subject to known and unknown risks
and uncertainties including, but not limited to, general business,
economic, competitive, political and social uncertainties,
uncertain and volatile equity and capital markets, lack of
available capital, actual results of exploration activities,
environmental risks, future prices of base and other metals,
operating risks, accidents, labour issues, delays in obtaining
governmental approvals and permits, and other risks in the mining
industry.
The Company is presently an exploration stage company.
Exploration is highly speculative in nature, involves many risks,
requires substantial expenditures, and may not result in the
discovery of mineral deposits that can be mined profitably.
Furthermore, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such
forward-looking statements will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such statements.
For more information, please call 778-899-1780, email
info@usharesources.com or visit www.usharesources.com.
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SOURCE Usha Resources Ltd.