Cypress Development Corp (TSX-V:CYP, OTCQB:CYDVF) announced that it has completed its acquisition of Enertopia Corporation's Clayton Valley lithium claystone project, which is located adjacent to Cypress’ Clayton Valley lithium project in Nevada.
The lithium exploration company said the purchase price for Enertopia’s project comprised US$1.1 million in cash and the issuance of 3 million Cypress Development common (consideration) shares.
“The property is a continuation of the lithium-bearing units in Cypress' project, with Enertopia's drilling having shown similar values of lithium,” Cypress Development CEO Bill Willoughby said in a statement.
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“With this consolidation, the data will be incorporated into our resource model and has the potential to enhance the project through our Feasibility Study underway,” Willoughby added.
Cypress noted that the transaction also included Enertopia entering into an Irrevocable Proxy and Voting Agreement and Lock-Up Agreement with Cypress in relation to the consideration shares, in which Enertopia agrees to vote in favor of shareholder resolutions supported by Cypress' board of directors, agrees to certain limitations to the circumstances under which it could sell the consideration shares and agrees to a 12-month standstill in relation to certain corporate activities pertaining to Cypress shares.
The company also said it has agreed to pay a finder's fee of US$105,000 to an arm's-length party in connection with the transaction, subject to TSX Venture Exchange approval.
Cypress Development is a Canada-based advanced-stage lithium exploration company, focused on developing its 100%-owned Clayton Valley project, which it is advancing towards the production of high-purity lithium hydroxide suitable for tier-one battery usage.
Also, work completed by the company led to the discovery of a world-class resource of lithium-bearing claystone adjacent to the Albemarle Silver Peak mine, North America's only lithium brine operation.
Contact Sean at sean@proactiveinvestors.com