Melbourne-based explorer IRIS Metals (ASX:IR1) has appointed Harvis Advisers as a strategic and corporate adviser to assist with progressing its portfolio of lithium projects in South Dakota, US.
The main terms of the engagement include the immediate issue of 300,000 IR1 options exercisable at $1.50 each within 36 months from issue and vesting once IRIS’ 30-day volume weighted average price (VWAP) exceeds $2, along with 300,000 options exercisable at $2 each within 36 months from issue and vesting once the 30-day VWAP exceeds $2.50.
A further 300,000 options will also be immediately issued, exercisable at $2.50 each within 48 months from issue and vesting once IRIS’ 30-day VWAP exceeds $3. IRIS will also issue 300,000 incentive shares 18 months after the commencement of its engagement with Harvis.
IRIS reports either party can terminate the agreement by giving 30 days written notice. Harvis, which is led by Kelvin Flynn, and related entities have subscribed through IRIS’ initial public offering (IPO) prospectus for 150,000 shares.
Commenting on the appointment, IRIS Metals Chairman Simon Lill says: “We are delighted to welcome Kelvin and the Harvis Advisers team to IRIS to augment our strategy to advance the South Dakota Beecher Lithium Project. We also welcome Harvis as a shareholder through their investment in our recently completed $15 million capital raise.
“Harvis has an outstanding track record and engagement across the world’s largest and leading hard rock lithium projects”
The lithium market is somewhat opaque, so to be able to bring the knowledge of the Harvis team into our group is significant as we consider means of moving Iris towards production.
Harvis has an outstanding track record and engagement across the world’s largest and leading hard rock lithium projects. These include Greenbushes, Wodgina, Pilgangoora, as well as a number of key exploration projects.
Kelvin and his team have an intimate understanding of what it takes to explore, discover, develop, finance, and operate hard rock lithium projects as well as a global lithium supply chain.
The management team welcomed Kelvin to the Beecher and other South Dakota project sites earlier this year, where we have existing mining licences by way of patented claims. The board intends to leverage Harvis’ commercial and strategic advice immediately, and we look forward to working closely together.”
Harvis’ Managing Director, Kelvin Flynn, is a qualified chartered accountant with over 31 years of experience in investment banking and corporate advisory roles, including private equity, special situations investments, and structured credit transactions in the mining and resources sector.
IRIS says he has held various leadership positions in both Australia and Asia and was previously the Executive Director/Vice President of Goldman Sachs (NYSE:GS) and Managing Director of Alvarez and Marsal in Asia.
The company says Flynn played a ‘key’ role while he was VP of the Goldman Sachs Special Situations Group in the acquisition of the Industrial Minerals’ (ASX:IND) Sons of Gwalia assets, which included the Greenbushes and Wodgina mines and associated processing plants in Western Australia. These have since emerged as leading tier-one lithium producers.
More recently, IRIS says Harvis acted as financial adviser to Wildcat Resources (ASX:WC8) for its acquisition of the Tabba Tabba Tantalum Mine and lithium exploration project from tantalum supplier Global Advanced Metals, along with a $7 million placement.
In late 2020, Harvis co-advised Resource Capital Fund and AustralianSuper on a $230 million equity investment into Pilbara Minerals (ASX:PLS), which funded the acquisition of assets held by Altura Mining (ASX:1MC).
Harvis has also been engaged by one of Western Australia’s ‘largest’ downstream lithium hydroxide processors to explore financing options. Flynn is currently a Non-Executive Director of Mineral Resources (ASX:MIN) and Silver Lake Resources (ASX:SLR).
Also commenting, Flynn says the Harvis team is ‘very excited’ about the potential for a ‘significant’ lithium discovery in South Dakota.
“IRIS has a unique first mover advantage and platform for lithium exploration and development and therefore strategic position within the US lithium supply chain”
“IRIS has a unique first mover advantage and platform for lithium exploration and development and therefore strategic position within the US lithium supply chain.”
IRIS Metals is a Melbourne-based explorer with an ‘extensive’ suite of assets in South Dakota, US considered ‘highly prospective’ for hard rock lithium. These assets include the Dewy, Custer, Helen Beryl, Beecher, Edison, Tinton, Keystone, and Ruby projects. Along with its assets in South Dakota, the company also holds the Kookynie and Leonora projects in Western Australia.
According to IRIS’ latest quarterly report published on 28 April 2023, the company had $800,000 cash at hand at the end of the quarter and a quarterly net cash outflow of $1 million following a pre-emptive $1.5 million capital raise.
Write to Harry Mulholland at Mining.com.au
Images: IRIS Metals Ltd
