The binding letter of intent allows TSX Venture Exchange-listed BlueBird to acquire 75% of Impact's Broken Hill project.
BlueBird will pay $150,000 cash, issue 5.25 million shares up front and another $500,000 worth within three years, and spend $2.25 million on exploration over three years.
The initial parcel of BlueBird shares have a current market value of $2.63 million, and the two companies have reached agreement to protect Impact's shareholding from any short-term downside and allows BlueBird the right to buy back two thirds of the shares issued.
The Broken Hill project covers 726sq.km near the Broken Hill zinc-lead mine.
Around A$6 million has been spent on the ground, which is considered prospective for nickel, cobalt, copper and platinum group...