Metal Energy Corp. has announced the closing of its previously announced claims acquisition directly adjacent to the SourceRock Project.
This area of the SourceRock Project is prospective for lithium brines in the Thunder Bay-Nipigon area of northwestern Ontario.
These mining claims were drilled in 2006 and intersected significant saline water flow from 184.7-202.39 metres as well as halite cubes, sedimentary cements, and beds, including halite precipitating from waters as the core dries from 528.52-582.5m.
Halite precipitating, as described in the core logs, suggests that the saline fluids are supersaturated with high total dissolved solids (TDS) concentrations. High TDS concentrations typically correlate with high lithium concentrations.
About the SourceRock Project
SourceRock encompasses 91,288 hectares within the Proterozoic Sibley sedimentary basin, Thunder Bay-Nipigon area, Ontario.
It has excellent access to infrastructure and capacity that has supported previous exploration programs and mine development, including year-round highway, railroad, and seaport access, with power and natural gas lines crossing it.
The Project’s purchase agreement
On 8 July, Metal Energy entered into a Purchase Agreement with an arm’s length vendor to acquire an undivided 100% interest in nine mining claims (189 hectares) adjacent to the SourceRock Project.
The company has issued the vendor the following terms:
- 1,800,000 common shares of Metal Energy; and
- $10,000 in cash.
All of the issued common shares will be subject to such hold periods that are prescribed by applicable securities laws.
Metal Energy will be the operator of the nine mining claims and will have the rights and responsibility to execute all work programs on the SourceRock Project.
Further to the consideration listed above, the vendor retains a 2% Gross Value Royalty (GVR) on the claims. The company has the right to purchase 1% of the GVR from the Vendor for $1,000,000 at any time.
