Usha Resources Ltd. Announces Intent to Sell Major Stake in Jackpot Lake Project to Stardust Power, Inc.

Usha Resources Ltd., a North American lithium exploration firm, has entered into a Letter of Intent with Stardust Power, Inc. This agreement grants Stardust Power the option to acquire up to a 90% stake in the Jackpot Lake Lithium Brine Project, located in Nevada.

The potential deal, valued at up to US$26,025,000, includes multiple components such as cash payments, stock options, and a work commitment. Usha would retain a 10% interest in the project and a 2% Net Smelter Royalty. However, Stardust Power holds the option to buy back 1% of the NSR for US$7.5M.

The transaction is contingent on several conditions, including Stardust Power's satisfactory commercial and legal due diligence, the execution of definitive agreements, and approval by the TSX Venture Exchange. Usha has received a non-refundable US$75,000 from Stardust Power as part of the LOI, which restricts Usha from engaging with other parties about the project until September 2024.

Additionally, Stardust Power is developing a significant lithium refinery in Oklahoma, aimed at the electric vehicle market. The facility is expected to be one of the largest in the U.S., producing up to 50,000 tons of battery-grade lithium carbonate annually.

Stardust Power is also preparing to go public on Nasdaq, facilitated by a merger with Global Partner Acquisition Corp II, anticipated to finalize in the first half of 2024.