MAX Power Mining has acquired a district scale opportunity, which targets lithium-rich brines as well as claystones in Arizona, US.
This is in the 130km2 Willcox Playa in Cochise County, Arizona, located southeast of Phoenix.
Under the sale and purchase deal, MAX Power will acquire 100% of three mineral exploration permits (state land) from Ares Strategic Mining.
The firm will pay for the deal in $40,000 cash and through issuance of 500,000 of its common shares.
Additionally, the transaction mandates that Ares cannot offload over half of the consideration shares within six months from closing.
The deal marks MAX Power’s foray into the US lithium industry.
In the 1970’s, the US Geological Survey (USGS) confirmed this area as one of the most prospective locations for lithium after carrying out limited drilling.
USGS also said that this area’s potential was like that of Clayton Valley, Nevada.
Besides, after US Air Force ceased its decades-long activity in the Willcox Playa, MAX Power benefitted from first-mover advantage.
As a result, the firm obtained three blocks, together spanning 3,754 acres. These blocks were mainly leased from the state of Arizona.
MAX Power CEO Rav Mlait said: “This strategic move into the United States is another way of differentiating MAX in the growing lithium space in combination with our initiative in northern Quebec where we are the forefront of a highly targeted drive to discover entirely new high-grade lithium camps.
“With an American division and a Canadian division, our view is that we will be able to grow our shareholder base exponentially in 2023 while delivering brisk year-round news flow.”
The latest deal comes shortly after MAX Power’s acquisition of the Spark lithium property in northern Quebec, Canada.