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Canadian miner Q Battery Metals (QBM) has announced it has entered an agreement to purchase 100% of 1412814 BC (814BC) in an all-share transaction.
Why it matters
Holding company 814BC owns 101 mineral claims spread over 5,376 hectares in the Pontax River area of Quebec, Canada. While they are not yet explored or tested, QBM believes that the claims may hold significant lithium deposits.
The company stated: “This property could potentially host [lithium-caesium-tantalum] pegmatites and a lithium deposit, due to its vicinity to both potential fertile parent peraluminous granite bodies, as well as being close to other known lithium deposits in the region.”
QBM will likely benefit from increased demand for any lithium it produces due to the necessity of manufacturers using domestically produced materials in order to benefit from the US Inflation Reduction Act. As such, any lithium found in the Pontex River area will immediately make QBM a target for partnership and investment from renewable-focused businesses such as battery manufacturers due to the increasing need for consistent supply of the metals.
Previously known as Black Tusk, QBM has purchased a number of similar lithium pegmatite claims in Canada. In February, the company acquired 1396427 BC, a purchase that included the 11 claims it owned. This, the 101 claims previously held by 814BC and at least four other current QBM projects are all situated in Quebec, Canada. In consolidating lithium projects in the region, QBM is giving itself infrastructural advantages and economies of scale to benefit from, offering the company a large potential for growth in the North American lithium industry.
Upon completion of the deal, shareholders of 814BC will receive 5.8 million shares in QBM to be distributed among them in exchange for 100% of the company.