ACME Lithium Inc. (CSE: ACME) (OTCQB: ACLHF) (the "Company", or "ACME") is pleased to announce that it has entered into a term sheet with Lithium Royalty Corporation ("LRC"), a leading battery metals royalty and streaming company. Upon closing, ACME will receive US$650,000 from the grant of project royalties on its Manitoba lithium assets and US$2,350,000 by way of non-brokered private placement (the "Private Placement"). Total funding to ACME is US$3 Million or approximately CN$3,815,400. The closing of the transaction outlined in the term sheet is subject to final due diligence and definitive documentation and is expected to close on or before March 17th, 2022.
LRC will purchase a 2% Gross Overriding Royalty on lithium or other metals over ACME's Euclid-Cat Lake and Shatford Lake projects located in south east Manitoba, with proceeds to be directed to exploration on those properties.
LRC will subscribe for a non-brokered private placement through the issuance of 3,179,500 units (the "Units") at CN$0.94 per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share for two years at a price of CN$1.22. All securities that are issued pursuant to the Private Placement with be subject to, among other things, a hold period of four months and one day in accordance to applicable Canadian securities laws.
ACME will use the gross proceeds of the Private Placement for exploration at its 100% owned Cat-Euclid and Shatford Lake lithium projects in south east Manitoba and its Clayton Valley and Fish Lake Valley, Nevada projects, as well as general working capital purposes
ACME holds 27 claims totaling approximately 11,803 acres strategically situated in the pegmatite fields of the Bird River Greenstone Belt (BRGB) in southeastern Manitoba, Canada.
About Lithium Royalty Corporation
LRC is a dedicated battery material investor partnering with battery material companies whose assets exhibit high grade, low cost, and key technical attributes that will help drive this once in a hundred year thematic. LRC is predominantly focused on investing in lithium due to extremely low obsolescence risk. LRC brings a wealth of experience and expertise with industry executives, portfolio managers, geologists, chemical engineers, and others as part of its team. LRC is able to originate and execute niche transactions with the aid of its extensive network with the electric vehicle ecosystem. LRCs portfolio includes 17 royalties as well as several offtake agreements and equity positions in the lithium industry. For more information about LRC please visit https://lithiumroyaltycorp.com/
About ACME Lithium Inc.
Led by an experienced team, ACME Lithium is a mineral exploration Company focused on acquiring, exploring and developing battery metal projects in partnership with leading technology and commodity companies. ACME has acquired or is under option to acquire a 100-per-cent interest in projects located in Clayton Valley and Fish Lake Valley, Esmeralda County Nevada, and in southeastern Manitoba.
On behalf of the Board of Directors
Chief Executive Officer, President and Director
Telephone: (604) 564-9045
Neither the CSE nor its regulations service providers accept responsibility for the adequacy or accuracy of this news release.
This news release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur; and in this news release include but are not limited to the closing of the sale of a royalty, the closing of the Private Placement, and the undertaking of any expenditures on the Company's mineral projects. There is no certainty the transactions with Lithium Royalty will close in the manner or on the terms outlined above, or at all. All forward-looking statements speak only as of the date they are made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112628