Todd River Resources, an Australian mineral resources company, has signed an agreement to acquire a 100% interest in mineral claims within Ross Lake, MAC and the Halo-Yuri lithium projects in the Northwest Territories in Canada.
Collectively called Canadian projects by Todd River, the projects cover a total area of 500km² and 50,000 hectares.
Each of the projects is said to contain significant pegmatite swarms. Spodumene occurrences at Ross Lake and Halo-Yuri has been confirmed through government mapping.
Todd River is acquiring the Ross Lake and MAC lithium projects from DG Resource Management (DGRM) and Hale Court. Halo-Yuri project is being sold by 877384 Alberta, 507976 N.W.T. and Zimtu Capital.
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Once the transaction is completed, DGRM will become the largest shareholder in Todd River, owning nearly 16% of the company.
As part of the terms of the agreement, Todd River will issue 340 million shares at A$0.010 ($0.0064) apiece.
The company will also issue 500 million performance rights, which can be exercised into 500 million shares. The issue of the shares and performance rights is subject to shareholder approval.
Other components of the consideration include cash payments totalling C$1.35m ($1m) and a 2% royalty payable on a gross revenue and/or net smelter return basis derived from future production at the mines.
Todd River Resources managing director Will Dix said: “The acquisition of the Northwest Territories lithium projects and concurrent capital raising marks an exciting new chapter for Todd River, positioning us in one of the world’s most rapidly emerging lithium provinces.
“Limited historic mapping and sampling at the Ross Lake and Halo-Yuri Projects have extremely promising results, confirming the presence of spodumene within extensive pegmatite bodies across both projects.”
The company has also secured firm commitments to raise A$5m through a placement of 500 million of its shares, each priced at A$0.01.