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Author: ekhazzaka

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Bradda Head Lithium Ltd. (AIM:BHL) – Bradda Enters a Royalty Deal With Lithium Royalty Corp.

Bradda Head Lithium announced it entered into a royalty agreement with Lithium Royalty Corp (LRC). The agreement consists of a 2% gross overriding royalty totaling US$8M over its sedimentary lithium claims in central Arizona. We see this deal as a large stamp of approval from the Lithium Royalty team as it manages to raise non-dilutive funds for exploration of what appears to be specifically for its sedimentary lithium including Bruno Creek East, Bruno Creek West and Wikieup. We estimate that this 2% royalty could be worth US$300/t or nearly US$7.5M in royalty payments annually to LRC, assuming hypothetical annual production of 25,000t LCE at prices of US$15,000/t and that the 2.5Mt LCE threshold is met. Bradda Head has several positive attributes: multiple projects across multiple deposit types, great jurisdictions with high Fraser Institute rankings (NV, AZ), good infrastructure, low political and geological risk, low CO2 footprint, geological upside and management that is heavily aligned with shareholders.

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