The Conversation (0)
Scientific Metals (TSXV:STM) has entered an arms length agreement to acquire the Deep Valley lithium property in west-central Alberta. The 6,648 hectare property is located 55 kilometers west of Fox Creek. 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 …
Scientific Metals (TSXV:STM) has entered an arms length agreement to acquire the Deep Valley lithium property in west-central Alberta. The 6,648 hectare property is located 55 kilometers west of Fox Creek.
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)”.
The terms of the proposed transaction provide as follows: STM shall acquire a 100% interest in the Property in consideration for a cash payment of $15,000 and the issuance of 4,000,000 common shares of the Company. An existing 3% net smelter royalty shall remain 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. An arm’s length finder’s fee is payable in connection with the transaction in the amount equal to $38,625, such finder’s fee to be satisfied on the closing date by the issuance of 386,250 common shares of the Company at a deemed price of $0.10 per share. The transaction has been conditionally approved by the TSX Venture Exchange and is expected to close within the next week.