Canadian mineral exploration company Alchemist Mining has signed an agreement to acquire US-based Aqueous Resources for $9.1m.
Aqueous Resources owns a patent-pending technology for an electro-pressure membrane process and method for the recovery and concentration of lithium chloride from aqueous sources.
The company has also completed developing a pilot system to process brines using its proprietary process at its laboratory facility in Denver.
According to the agreement, Alchemist Mining will acquire all of Aqueous’ membership interests from its security holders in lieu of shares in the former’s capital.
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Once the deal is completed, Aqueous would be a fully owned subsidiary of Alchemist.
Under the agreed terms, the company will issue 17.5 million of its shares to Aqueous security holders at $0.52 apiece.
After the acquisition is completed, Aqueous will have the right to appoint one director to Alchemist’s board. The parties have mutually agreed on Fredrik Klaveness for the role.
Aqueous security holders securing consideration shares will be subject to a voluntary escrow where 10% of Alchemist’s shares will be released on closing and 15% shares will be released every six months thereafter.
The deal is subject to several conditions such as due diligence and is scheduled for completion by the end of July 2023.
In April, Alchemist acquired LiTHOS Technologies, which holds a 100% stake in mineral claims spanning nearly 678,000 acres in a virgin lithium brine basin known as the Cactus Jack and the Pac-Man properties in Arizona, US.
LiTHOS also invested in AcQUA, a wastewater solutions technology for direct lithium extraction from continental brine reservoirs enriched with lithium.