Hawkmoon Resources Corp (CSE:HM, OTCQB:HWKRF) said it had struck an option deal to buy 100% in the Bonanza lithium brines property in Alberta, Canada and announced plans for a placing to raise up to C$1 million.
The project consists of two permits covering 18,432 hectares, is easily accessed by Alberta Provincial Highway No. 49, and sits just 25 kilometres (km) east of Dawson Creek in BC.
According to old data, an abandoned oil well sunk in 1975 intersected the Wabamun Group Carbonates from 3,252.80 downhole and encountered 89 miligrams per liter (mg/L) lithium in brines sample.
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"The Canadian province of Alberta has significant lithium resources and is poised to compete in the global market," said Branden Haynes, the CEO of Hawkmoon.
"The province’s oil fields hold large deposits of lithium in subsurface brine, which has long been overlooked as industrial waste from oil field operations.
"New technologies known as 'direct lithium extraction' are being developed to access Alberta’s lithium-brine potential in many of the same reservoirs as Alberta’s existing oil and gas resources. Hawkmoon believes that lithium presents exciting opportunities for investment and diversification."
The company struck the option agreement dated January 3 with Thomas W. Clarke and Drakensburg Corp (The optionor is a corporation owned by Thomas W. Clarke. Hawkmoon's vice-president of exploration and a director of the company).
Terms of the deal include payments of a total of C$100,000 in cash, the issue of 60,000 shares and work commitments worth C$400,000.
The private placing sees the company issue up to 12.5 million units at C0.08 each, for gross proceeds of up to C$1 million.
Each unit comprises one company share and one share purchase warrant, with each warrant exercisable to acquire one company share at an exercise price of C$0.10 for two years from issue.
The financing will allow the company to develop its new lithium project and further drill the Wilson gold project as well as conduct exploration on the recently acquired Barriere and Gilnockie claims in BC, it said.
Hawkmoon Resources is focused on junior stage project acquisitions across Canada.
Contact the writer at giles@proactiveinvestors.com