Metal Energy has announced its acquisition of a highly prospective lithium-brines project in northwestern Ontario. Called SourceRock, the project covers 913 square kilometres with untested regional lithium-brine targets in the Thunder Bay-Nipigon area.
According to Metal Energy, the project is already drill-ready and has an exploration permit in-hand from the Ontario Ministry of Mines for up to 20 drill pads. As part of the acquisition deal, Metal Energy paid a cash payment of CAD 50,000 ($37,925) to the vendor and committed to a staking program valued at greater than CAD 100,000 representing 2,000 claim units.
The remaining terms of the agreement require Metal Energy to issue three million of its shares on acceptance of the option agreement, 1.5 million warrants, and shares valued at CAD 500,000 on or before the first anniversary of the effective date of the deal. While the vendor has retained a 3% net smelter returns royalty as part of the option agreement, Metal Energy is positive about the deal and hopes it will boost their operations.