Mila Resources PLC - gold exploration firm - Agrees with Liontown Resources Ltd to amend the terms of the convertible loan note issued to Liontown in July, following the publication of its prospectus in October and completion of GBP2 million fundraise in November. In July, Liontown subscribed for AUD100,000 unsecured convertible loan notes issued by Mila. Following the amendment Liontown has agreed that Mila will convert the AUD100,000 into 5.1 million Mila shares at a conversion price of 1 pence per share. Mila has also agreed to issue Liontown warrants to subscribe for up to a further 5.1 million shares exercisable at a price of 2 pence per share at any time until January 29, 2027.
Also says Liontown is scheduled to begin exploration for lithium at the Kathleen Valley gold project in Western Australia this week. Says Liontown has commissioned a aerial imagery survey for its baseline studies to comply with heritage and environmental regulations ahead of the sampling and drilling works on the project. As previously announced, Liontown has identified several lithium targets in the northern and central areas of the project, which coincide with the gold target areas previously identified by Mila. Under the joint venture, Mila will be able to access and conduct gold and base metal test work from the drilling core provided by Liontown drill programme. The board of Mila expects that this will significantly reduce the overall cost and timeframe of Mila's exploration activities within the coincident areas. Says further information regarding Liontown's activities and results will be provided in "due course".
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By Greg Rosenvinge, Alliance News senior reporter
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Mila Resources (MILA)