Idaho Champion (CSE:ITKO, OTCQB:GLDRF) announced that it has entered into a binding memorandum of understanding with Quebec Precious Metals Corporation (QPM) to acquire a 100% interest in two prospective lithium pegmatite projects (Blanche and Charles) in Quebec’s Eeyou Istchee James Bay territory.
The discovery-focused exploration company said together with its existing cobalt assets in Idaho, the pending acquisition pivots Idaho Champion (CSE:ITKO, OTCQB:GLDRF)'s strategy to focus on making a meaningful impact in the North American battery metals sector.
“The Blanche and Charles projects place the company right in the mix within a fast-growing lithium pegmatite district,” Idaho Champion CEO Jonathan Buick said in a statement.
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“The projects were originally explored for precious and base metals, but more recently, evidence of pegmatites has led to a re-assessment of the lithium discovery potential that warrants more work,” Buick added.
Idaho Champion noted the purchase price will consist of C$100,000 in cash plus 12 million company common shares, 50% of which will be subject to escrow for 18 months, giving QPM an approximate 7.4% equity stake in Idaho Champion post-transaction.
It added that QPM will retain a 2% net smelter return royalty (NSR) on the claims, although Idaho Champion has the option to repurchase 1% of the NSR from QPM for $1 million.
As well, the company announced it will issue up to 20 million Idaho Champion common shares, at a price of C$0.05 per share, in a private placement that is expected to raise gross proceeds of C$1 million.
Proceeds of the offering will be used for the acquisition payment and related transaction costs, preliminary field work on the projects and for general working capital purposes, the company said.
Closing of the acquisition is subject to usual conditions for this type of transaction, including a 45-day due diligence period, as well as regulatory and stock exchange approval.
Idaho Champion is a discovery-focused exploration company that is committed to advancing its highly prospective mineral properties located in Idaho and, shortly, Quebec. The company is vested in Idaho with four cobalt properties in Lemhi County in the Idaho Cobalt Belt. In addition, Idaho Champion has been advancing the Baner gold project in Idaho County, as well as the Champagne polymetallic project located in Butte County near Arco.
Contact Sean at sean@proactiveinvestors.com