Hertz Energy (CSE:HZ, OTCQB:HZLIF) announced that it has agreed to acquire the Cominco uranium project located in Bathurst Inlet, Nunavut, Canada.
The company's US-listed shares added 21.5% to US$0.14 on the news.
"Hertz was always founded and positioned to explore for mineral deposits that will power the future. We started with our Lucky Mica project and have added the AC/DC lithium project, while also obtaining options to acquire the Snake and Patriota lithium projects, since our listing in April 2023,” Hertz CEO Kal Malhi said in a statement.
“Adding the Cominco property fits extremely well with our energy metals offering and we aim to aggressively explore both the lithium and uranium mineral projects and continue to offer investors a well-diversified energy metals project portfolio."
The Cominco uranium property is focused on two main uranium showings of interest, the Pomie and the Yon showings, with additional showings of uranium, copper, gold, nickel and lead known in the area.
Hertz Energy (CSE:HZ, OTCQB:HZLIF) noted that both the Pomie and Yon showings were explored in the mid-1970s by Cominco and Noranda but no work using modern exploration technologies has since been carried out.
In consideration for the acquisition, the company will pay the vendor acquisition costs estimated not to exceed $75,000 and grant it a 2% net smelter returns royalty on the Cominco property.
The vendor is wholly owned by Kal Malhi, a director and officer of the company, it noted.
Hertz Energy (CSE:HZ, OTCQB:HZLIF) also highlighted that in 2024 it will continue to advance its energy metals portfolio with a focus on its lithium assets located in James Bay, Quebec.
It recently closed a $1.5 million charity flow-through financing which will be used to advance its Quebec lithium projects.
Additionally, it recently closed a $1.037 non-flow-through financing that will be used to advance its extraction technology, exploration at its Lucky Mica Project, consulting/management fees, marketing/IR, the acquisition of the Cominco Property, and general and administrative matters.
Hertz Energy is a British Columbia-based junior exploration company primarily engaged in the acquisition and exploration of mineral properties.