Investors in Surge Battery Metals (TSXV: NILI) have seen a vote of confidence from American Lithium (TSXV: LI). It was revealed last night that the latter will be taking a 9.9% stake in the company.
The transaction will see American Lithium subscribe to 17.9 million units of Surge at a price of $0.40 per unit. Each unit under the subscription is to contain one common share and one common share purchase warrant. Warrants are to be valid for a period of three years, and contain an exercise price of $0.55 per share.
“We are pleased to make this strategic investment with Surge to support the further development of their Nevada North Lithium claystone Project. In addition to this funding support, our seven years exploring and developing claystones in Nevada will provide Surge with valuable experience in exploration, process and metallurgical study, permitting and general operational matters in the region,” commented American Lithium CEO Andrew Bowering.
The transaction will also see Ted O’Connor, Executive VP of American Lithium, appointed to Surge’s board of directors.
Surge Battery Metals is primarily focused on developing its 100% owned Nevada North Lithium Project, which consists of 243 mineral claims. An eight drill hole program conducted last fall results in 508 samples being collected, of which 274 assayed at 1,000 ppm lithium or higher. The average lithium content of all near surface clay zones intersected by the company was 3,254 ppm, which is based on a 1,000 ppm cut-off.
American Lithium meanwhile is currently developing the TLC Lithium project in Nevada, among other projects. The project is estimated to host 4.2 Mt of LCE measured resources, 4.63 Mt LCE indicated resources, and 1.86 Mt LCE inferred resources.
Proceeds from the investment into Surge Battery Metals are slated to be used for advancement and development of the Nevada North Lithium project, as well as general corporate purposes.
“We are excited to have American Lithium Corp. take this position in our company. As a lithium exploration and development company they have considerable expertise in the lithium space, particularly in Nevada. With this investment, Surge continues to build its expertise as we advance our Nevada North Lithium Project,” commented Greg Reimer, CEO of Surge.
Surge Battery Metals last traded at $0.47 on the TSX Venture.
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