Southern Cross Britannia Limited agreed to acquire Excarb S.A. from NewPeak Metals Limited (ASX:NPM) on June 15, 2023. NPM will pay $1.5 million to SCB to complete a drilling program in the Hombre Muerto South lithium Project to determine the lithium concentration, porosity, permeability, downhole geophysics with the goal of ultimately estimating a lithium brine resource. The transaction is dependent on satisfaction of several conditions, including SCB completing a geophysics survey with the results identifying and confirming, to the sole satisfaction of NPM, the prospectivity of the tenements for lithium.

Should NPM be satisfied with the results, and all other conditions are met, it has a period of three months to transfer to SCB the shares of Excarb SA and subscribe $1.5 million to SCB for a 25% interest in SCB. NPM, at its sole discretion, can acquire a further 5% of SCB for $1.5 million within three months after the drilling is complete on the Hombre Muerto South project to take NPM up to a 30% holding in SCB. NPM to be offered the rights to participate in any further capital raising by SCB in order to maintain its equity position.

Completion of the Transaction will be conditional upon the prior or contemporaneous satisfaction of the following conditions, NPM being provided with the results of the Geophysics Survey and those results identifying and confirming to the satisfaction of NPM, completion of due diligence by NPM on SCB or other SCB Related Body Corporate, as applicable, to the satisfaction of NPM; SCB on Excarb, the Excarb Tenements and Las Openas Metals SA, to the satisfaction of SCB, the negotiation and execution of the formal Transaction Documentation and the parties obtaining all relevant Authorisations and third-party approvals and consents to the Transaction in accordance with all applicable regulatory requirements. Upon completion of the transaction NPM is expected to hold 25% of the undiluted share capital of SCB. Completion of the transaction will occur on that date which is three months after the satisfaction or waiver by NPM and SCB, respectively of the last of conditions precedent.

If the conditions precedent are not satisfied or waived by the date falling 3 months from the date of the execution of the agreement, then either party may elect to terminate this agreement. MMG Capital Ltd acted as the sole advisor on this Transaction.