Bradda Head Lithium (AIM:BHL) has signed a conditional, binding agreement to acquire six prospecting uranium licences in Tanzania, including the Mkuju Project, through a newly formed subsidiary, BHL Tanzania Limited.
The North America-focused lithium developer is buying the licences from Zeus Resources (T) and its parent, ASX-listed US1 Critical Minerals, marking its first move into uranium and into a new jurisdiction.
Total consideration is $1.8m, split into $1m cash on completion, $300,000 payable once Bradda Head defines an indicated or measured resource of at least 25m pounds of U3O8, and $500,000 on completion of a definitive feasibility study and a formal mine-build decision.
The two later instalments can be settled in cash or shares, priced against the 30-day volume-weighted average price ahead of satisfaction.
Bradda Head has also paid Zeus a $120,000 exclusivity fee to cover licence rents, repayable if completion does not occur by 15 October, or convertible into US1 shares if unpaid.
"Uranium sits alongside lithium as a vital building block of the clean energy future," said Executive Chair Ian Stalker, adding the deal "sits comfortably alongside our established US lithium assets rather than overlapping them."
Funds raised in July for drilling at the company's San Domingo project have been earmarked for the cash consideration, meaning Bradda Head will need to raise further capital for working capital and exploration across both San Domingo and the new Tanzanian licences.
The company said the payment will not affect ongoing drilling at its flagship Whistlejacket project in Arizona.
Completion is subject to Tanzanian regulatory approvals, with preliminary exploration on the licences planned within 12 months of closing.
News Intelligence what this means for the company
Bradda Head Lithium is entering uranium exploration in Tanzania via six prospecting licences from Zeus Resources, paying $1.8m with most deferred against resource and feasibility milestones. The move marks the company's first uranium venture and first entry into Africa, funded from July capital raises earmarked for its Arizona lithium drilling—meaning further capital will be needed to fund both the Tanzanian exploration and continued work at San Domingo and Whistlejacket.
- US1 Critical Minerals (Zeus's parent) receives $1m cash on completion plus potential $800k in deferred payments or shares, and holds a $120k exclusivity fee convertible to its own stock if unpaid.
The deal diversifies Bradda Head's portfolio beyond North American lithium but introduces execution risk in a new commodity and jurisdiction, while immediately triggering a capital requirement the company has flagged it does not yet have. The deferred payment structure limits near-term cash burn but ties future dilution to exploration success.
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