ACME Lithium Inc. (CSE:ACME, OTCQB:ACLHF) announced that it has entered into an option agreement with Eagle Battery Metals Corp (EBM) whereby AMCE will grant EBM the exclusive option to acquire 100% interest, subject to a retained royalty, to mineral claims at ACME’s Fish Lake Valley lithium project in Nevada.
The 4,139-hectare Fish Lake Valley lithium project is made up of 207 lode mining claims located to the east of Ioneer’s Rhyolite Ridge lithium-boron project.
Private lithium exploration and development firm EBM can exercise the option by paying US$1,475,000, issuing shares worth US$3.3 million and incurring US$500,000 in exploration and development expenditures over 18 months.
Should EBM commence commercial production on any part of the property, they will be required to pay ACME a royalty of 1% of the net smelter returns (NSR).
Additionally, all proceeds from metals or commodities produced before EBM exercises the option or before commercial production commences will be paid to AMCE.
EBM can purchase at any time one-half of the NSR for US$1 million in cash or purchase the whole NSR for US$2 million.
ACME Lithium is a mineral exploration Company focused on acquiring, exploring, and developing battery metal projects in partnership with leading technology and commodity companies.