Adelong Gold Limited (ASX:ADG) entered into a binding agreement to acquire Three applications for lithium exploration permits in Lithium Valley in Minas Gerais, in Brazil from Rafael Mottin for AUD 0.78 million on September 22, 2023. Adelong Gold made an initial payment of AUD 100,000 and due diligence which has been completed. On satisfaction or waiver of the Conditions Precedent, Adelong Gold is to pay the following acquisition costs a cash payment of AUD 100,000 within 5 days; issue 20,000,000 shares to the vendor (or its nominees) within 5 days; and issue 20,000,000 unlisted options to the vendor (or its nominees) exercisable at AUD 0.02 within 2- years of completion of the acquisition. The vendor will be entitled to the following deferred consideration: If within 12 months of the acquisition, the exploration achieves 6 rock chip samples with grades >1% Li2O from at least 2 of the tenements, Adelong Gold is to issue a further AUD 100,000 worth of shares based on a 15 day volume weighted average share price (VWAP) at the time of issue; If within 5 years of the acquisition, the exploration achieves a continuous drill intercept of not less than10 metres intersection of grades exceeding1% Li2O, Adelong Gold is to issue a further AUD 150,000 worth of shares based on the 15 day VWAP at the time of issue; If within 5 years of the acquisition, on announcing a JORC compliant resource of not less than 6 million tonnes averaging in excess of 1% Li2O, Adelong Gold is to issue a further AUD 150,000 worth of shares based on the 15 day VWAP at the time of issue; and a 2% net smelter return royalty over minerals produced that are the subject of the Exploration Permits with Adelong Gold to have the right to buy-back half of the royalty for AUD 500,000.

In related transaction, Adelong Gold with oversubscribed firm commitments received to date (subject to shareholder approval) to raise up to AUD 1 million of which Directors shall contribute AUD 110,000 on the same terms (and subject also to shareholder approval). The transaction will complete within 5 days of the conditions precedent being met which include Obtaining Shareholder approval to refresh placement capacity and issue the shares and options, The granting of the tenements; Formation of a Brazilian subsidiary and obtaining all approvals to transfer the tenements to that company; and Other customary conditions precedent. GBA Capital has acted as financial advisor to Adelong Gold Limited and is supporting a capital raising.