Hertz Lithium Acquires Option For Brazil Pegmatite Project
FULL DISCLOSURE: This is sponsored content for Hertz Lithium.
Hertz Lithium (CSE: HZ) is headed to Brazil. The lithium explorer announced this morning that it has acquired the option to a hard rock property in the state of Minas Gerais, Brazil.
The option is for the prospective Patriota Lithium Project, which consists of tenements strategically located in the proximity of the Eastern Brazilian Pegmatite Province within the Aracuai Pegmatite District. The province is one of the largest pegmatite provinces in South America.
The project itself consists of 29 contiguous square kilometres, or 2,964 hectares, of mineral claims, roughly 45 kilometres from the Grota do Cirilo property operated by Sigma Lithium, which is the largest known hard rock deposit in the Americas. Infrastructure is said to be ideal, with nearby hydroelectric power, well-developed highways, and conveniently located ports and towns.
“We are laser focused to build Hertz Lithium into a multi-faceted lithium mineral exploration company with our Lucky Mica Lithium Project in Arizona and now the Patriota Lithium Project in Brazil and our Penn State Lithium Extraction Patent Licence,” commented Kal Malhi, Chairman of Hertz.
Under the option agreement, which was obtained via an assignment agreement with Brascan Resources and two Brazilian corporations, Hertz has the option to acquire up to a 100% interest in the Patriota project. The option agreement will see Hertz pay $150,000 in cash for the property, while covering $6,600 in mineral rights taxes and spending $200,000 on exploration expenses, half of which must be completed by September 20, 2023. The arrangement will see a 2% NSR applied to the property, half of which can be repurchased for a $500,000 cash payment two years after the start of commercial production.
In exchange for the assignment agreement, Hertz agreed to pay Brascan a total of $148,000 in cash, and an additional $100,000 in the event that surface sample assays from the property come in at 1% lithium or above.
Hertz Lithium last traded at $0.32 on the CSE.
FULL DISCLOSURE: Hertz Lithium is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Hertz Lithium. The author has been compensated to cover Hertz Lithium on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
