ACME Lithium Inc. (CSE:ACME, OTCQB:ACLHF) announced that it has signed an option agreement with Snow Lake Resources, enabling Snow Lake to earn up to 90% undivided interest in ACME's mineral claims at its Manitoba lithium pegmatite project areas.
The Manitoba lithium group comprises 37 mineral claims over three project areas totaling around 17,000 acres.
Snow Lake is a Canadian lithium development company listed on Nasdaq, focusing on advancing its Snow Lake project to supply the North American electric vehicle and energy storage markets.
Under the terms of the agreement, Snow Lake has the option to earn a 90% interest in the project by paying a total of C$500,000 and incurring C$1.8 million in exploration and development expenditures over a two-year period. The payments include an initial C$20,000, C$130,000 upon execution, C$150,000 in the first year, and C$200,000 in the second year.
Upon earning the 90% undivided interest and completing a positive feasibility study, Snow Lake and ACME will form a joint venture for further development. In this joint venture, Snow Lake will hold a 90% interest, and ACME will retain a 10% free carried interest until the completion of a feasibility study on the project.
Situated in the Bird River greenstone belt, the region hosts numerous pegmatite bodies, including complex rare-element lithium-cesium-tantalum (LCT) pegmatites. The Shatford-Birse claim area is contiguous to the south of Sinomine Corporation's Tanco Mine, an LCT producer since 1969.
ACME Lithium is a mineral exploration company dedicated to acquiring, exploring, and developing battery metal projects in collaboration with technology and commodity leaders. ACME has secured or is in the process of securing, a complete 100% ownership stake in a project site situated in Clayton Valley, Nevada. Additionally, the company has initiated option agreements with external parties for its projects in Fish Lake Valley, Esmeralda County, Nevada, as well as at Shatford, Birse, and Cat-Euclid Lakes in southeastern Manitoba.