Monax to acquire prospective Lithium project HIGHLIGHTS ...

Monax to acquire prospective Lithium project
HIGHLIGHTS
 Binding term sheet signed for prospective lithium tenement near Gingerella in northern Queensland  Rock chip sample reports 3.55% Li2O from lepidolite pegmatite
 Application for adjoining tenement completed Monax Mining Limited (Monax or the Company) is pleased to announce that it signed a binding term sheet with the owner of EPM 26053 which contains a reported occurrence of lithium bearing lepidolite pegmatite ( see Figure 1).

Laboratory assay results of a lepidolite-rich sample taken from the tenement reported 3.55% Li2O (see Plate 1).

Additionally, Monax has applied for a tenement which adjoins EPM 26053 (see Figure 1) on the basis that it contains the prospective Blackman Gap Complex, a geological unit which hosts lepidolite pegmatite.
Monax plans to apply for further tenements in the immediate area.
: Sample of lepidolite pegmatite which assayed 3.55% Li2O.

Transaction Overview
Under the terms of the agreement, Monax will have the right to earn an 80% interest in EPM 26053 by spending A$500,000 on exploration activities within 18 months of the date of execution of the transaction documents.
At the completion of the farm-in period, the vendor can elect to do either of the following:
 sell a 20% interest to Monax for an agreed amount or, if no agreement is reached between the parties, for fair market value as determined by an independent expert;

or  sell a 20% interest to a third party but not before offering Monax the option to purchase the interest at a value equal to the highest offer by a third party;

or  enter into an unincorporated JV with Monax until a decision to mine (DTM).
Upon a DTM, the vendor has the option to co-fund expenditure based on a respective 20% interest or convert the interest to an ongoing net smelter royalty (NSR) of 1.5% for all mineral sales derived from the tenement.