Metal Energy Corp (TSX-V:MERG, OTCQB:MEEEF) has closed its previously announced acquisition of SourceRock, a prospective lithium brine project in the Thunder Bay-Nipigon area of northwestern Ontario.
SourceRock encompasses 91,288 hectares within the Proterozoic Sibley sedimentary basin. It comes with available infrastructure that has supported previous exploration programs and mine development, including year-round highway, railroad and seaport access, as well as power and natural gas lines, the company said.
Earlier this month, Metal Energy signed an option agreement with an arms-length vendor (the "Vendor") to acquire a 100% interest in SourceRock.
In executing that option, the company paid $50,000 to the vendor and committed to a staking program valued at greater than $100,000 representing 2,000 claim units registered under Metal Energy, according to a statement.
Metal Energy also issued 3 million common shares and 1.5 million warrants to the vendor. Warrants are exercisable at $0.10. Shares of the company traded at $0.06 in Toronto as of Wednesday morning.
The company will issue an additional $500,000 worth of common shares on or before July 25, 2024.
The vendor has retained a 3% net smelter returns royalty. Metal Energy has the right to purchase the first 1% for $500,000 for four years, the company said. If it does so, Metal Energy can purchase the remaining 2% for $5 million within 10 years.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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