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Scientific Metals (TSXV:STM) has closed its acquisition of the Deep Valley lithium property in West Central Alberta. As quoted in the press release: The Property encompasses 6,648 ha (16,427 acres) and is located approximately 55 km due west of the community of Fox Creek. The Property is underlain by Leduc Formation aquifers that are known …
Scientific Metals (TSXV:STM) has closed its acquisition of the Deep Valley lithium property in West Central Alberta.
As quoted in the press release:
The Property encompasses 6,648 ha (16,427 acres) and is located approximately 55 km due west of the community of Fox Creek. The Property is underlain by Leduc Formation aquifers that are known to be highly enriched in lithium, potassium, boron, bromine and other commodities. Within the central part of the Property, historic samples of formation waters (brines) have returned 140 mg/L (ppm), which are amongst the highest values recorded within the Province of Alberta as reported by the ERCB in its report of October 2011 entitled “Geological Introduction to Lithium-Rich Formation Water with Emphasis on the Fox Creek Area of West-Central Alberta (NTS 83F and 83K)”.
In consideration for a 100% interest in the Property, STM made an aggregate cash payment of $15,000 and issued 4,000,000 common shares of the Company. An existing 3% net smelter royalty remains on the Property, of which 1% can be repurchased by the Company at any time in consideration for a cash payment of $1,500,000. In addition, STM paid an arm’s length finder’s fee of $38,625, which finder’s fee was satisfied by the issuance of 386,250 common shares of the Company at a deemed price of $0.10 per share. All of the securities issued by the Company are subject to a four month hold period.