Hertz Lithium Inc (CSE:HZ, OTCQB:HZLIF) has announced an agreement to acquire Canuck Lithium Corp in an all-stock transaction that would see Canuck Lithium shareholders receive a total of 23,150,001 Hertz Lithium common shares.
The mineral exploration company said Canuck's flagship AC/DC lithium exploration project encompasses 516 contiguous mineral claims spanning 265 square kilometers in the emerging world class hard rock lithium district in Quebec’s James Bay region.
"With this acquisition ... Hertz now holds three prospective lithium projects in North and South America (that) include the Lucky Mica Project in Arizona, the Patriota Lithium Project in Brazil, and the ACDC Lithium Project," Hertz Lithium CEO Kal Malhi said in a statement.
"With the addition of our very exciting patent-pending lithium extraction technology being developed in partnership with Penn State University, we believe this truly makes Hertz a diversified investment opportunity within the lithium supply chain," Malhi added.
Hertz noted there are approximately 135 historical references to pegmatite outcrops that have never been evaluated or sampled for their lithium potential on the property, according to the Quebec Government's SIGEOM Database.
It added that following the completion of the proposed transaction, the company intends to follow up on refining priority targets through ground truth investigations along with an aerial Light Detection and Ranging (LiDAR) Survey and high-resolution ortho imagery for an enhanced understanding of the AC/DC project's lithology and further confirmation of the priority targets before undertaking ground exploration programs.
This would be followed by a surface exploration program that would include outcrop mapping, focusing on pegmatite identification, description, prospecting, and rock sampling, as well as detailed channel sampling of any lithium pegmatites identified, according to the company.
Hertz stated the proposed transaction remains subject to certain closing conditions including, without limitation: the receipt by the company of all necessary consents and approvals; the completion of customary due diligence; each party's representations and warranties in the definitive agreement being true and correct in all respects as of the closing date; and each party completing its covenants and obligations as contained in the definitive agreement.
The AC/DC project is located 26 kilometres southeast of the Corvette lithium project owned by Patriot Battery Metals.
Hertz Lithium is a British Columbia based mineral exploration company engaged primarily in the acquisition and exploration of mineral properties while also working to develop a novel lithium extraction technology.
Contact Sean at sean@proactiveinvestors.com