Kula Gold Limited (ASX:KGD) entered into a binding term sheet to acquire a 70% interest in E70/5452 tenement in Kirup Project from Sentinel Exploration Limited for AUD 2.6 million on November 28, 2022. Kula to pay AUD 70,000 upon singing the Agreement and AUD 130,000 upon completing the acquisition for reimbursement of exploration expenditure costs incurred to date by Sentinel. The exploration expenditure incurred to date includes tenement acquisition costs, rates, rent, tenement management costs, geology consultants review of historical data and numerous site visits collecting samples.

These samples have been sent to the laboratory for analysis, results of which will be reported in due course; issue 12,000,000 fully paid ordinary shares. As a result of ASX Listing Rule 10.7, these shares will be subject to a 12-month escrow period from the date of issue; pay AUD 2 million payable in fully paid ordinary shares issued at the 10-day VWAP (commencing upon announcing the resource), with a minimum issue price of AUD 0.04 on completion of a JORC maiden inferred resource on the Kirup Project of a minimum of 10mt of ore at a grade of 1% lithium (or metal equivalent) or greater within 5 years of the Lithium Rights being acquired As a result of ASX Listing Rule 10.7, these securities will be subject to a 12-month escrow period from the date of issue; free carried exploration for Sentinel for its 30% interest in the Kirup Project to the completion of an economic Feasibility Study viable for bank finance; and the term sheet contains warranties typical for a transaction of this nature. The acquisition is conditional upon the following being satisfied by no later than March 31, 2023: Kula completing due diligence to its satisfaction; Kula obtaining all approvals under the Listing Rules for the acquisition, including approval by ASX for the terms of the deferred consideration); Sentinel acquiring all of the issued share capital of Merchant Ventures Pty Ltd; and the parties obtaining all approvals required under the Mining Act.

On March 31, 2023, Kula Gold received shareholder approval to complete the acquisition of a 70% interest in E70/5452 (Kirup Project).