ACME Lithium Inc (CSE:ACME, OTCQB:ACLHF) announced an amendment to its option agreement with Eagle Battery Metals Corp, focused on ACME's Fish Lake Valley lithium project in Nevada.
Under the amended agreement, EBM gains the exclusive option to acquire ACME's 100% interest in the mineral claims at the Fish Lake Valley project, with a retained royalty.
In exchange for $20,000, EBM receives an extension to make cash payments and incur exploration expenditures, ACME said in a statement.
The Fish Lake Valley lithium project comprises 207 lode mining claims spanning approximately 4,139 acres in Esmerelda County, Nevada, adjacent to Ioneer's Rhyolite Ridge Lithium-Boron Project.
EBM can exercise the option by paying $1.495 million in cash, issuing shares valued at $3.3 million, and spending $500,000 on exploration and development over a 12-month period starting from the amendment date. Additional cash payments and share issuances are contingent on milestones and lithium resource assessments.
ACME will retain a 1.0% Net Smelter Returns royalty on any commercial production from the property, with EBM having the option to purchase half or the entire royalty prior to commencing commercial production.