Silverton Metals Corp (TSX-V:SVTN, OTCQB:SVTNF) revealed that it has signed a letter of intent to acquire all the shares of The Wholesome Organic Limited (WOL), which owns the Peny property comprising 15 mineral claims totaling 3,204 hectares in the Snow Lake district in Manitoba, Canada in an all-stock deal.
The Peny Property is approximately 25 kilometres north-east of the town of Snow Lake in Manitoba and is prospective for Lithium Pegmatite and Volcanic Massive Sulphide (VMS) style mineralization which is known to occur in the local area.
Under the terms of the letter of intent, Silverton has agreed to acquire all the issued and outstanding shares of WOL. In exchange, Silverton Metals will issue to WOL shareholders a total of 13 million common shares at a deemed price of $0.095 each for total consideration of $1,235,000.
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Vancouver-based Silverton and WOL have agreed to forge a definitive agreement no later than July 31, 2022.
According to Silverton, the Peny Property encompasses rocks belonging to the Churchill Province and comprises metamorphic and metasedimentary rocks; predominantly Felsic and Arkosic Gniess's including arkose, arenite, and quartzite-derived gneiss and migmatite belonging to the Sickle Group, Missi Group and Sickle Metamorphic Suite.
The property lies adjacent to the formally producing Osborne Lake VMS Mine previously operated by the Hudson Bay Mining and Smelting Company, where historical workers report wall-rock are intruded by coarse-grained, sheared pegmatite. While the limited historical work on the property indicates that mineralization may include copper and zinc, Silverton intends to refocus the asset on the exploration of lithium, which has proven successful at neighbouring sites.
"Although we have significant silver assets in Mexico, we believe that diversifying our project portfolio to lithium-focused assets in Canada will add significant long-term value for shareholders," Silverton CEO Lowell Kamin said in a statement. "We believe the demand for battery technology will test the limits of metals supply and drive a long-term structural shift in the lithium market – an opportunity we want to capture and integrate into our business strategy."
Silverton Metals holds a 100% interest in three significant silver assets in Mexico – Pluton, in Durango, Peñasco Quemado in Sonora and La Frazada in Nayarit.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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