Collective Metals has signed an agreement to acquire the Whitemud project in north-western Ontario, Canada, from 1000587016 Ontario (587016) and the shareholders of 587016, collectively known as vendors.

Under the arm’s length definitive share exchange agreement, Collective Metals will acquire 100% of the outstanding shares of 587016, which owns the Whitemud lithium property.

In exchange, Collective Metals will issue four million common shares to the vendors, representing C$1.24m ($942,164.40) in aggregate share consideration at a deemed price of C$0.31 per share.

This equates to 11.3% of the issued and outstanding common shares of Collective Metals on a post-issuance basis.

Collective Metals will also make a C$40,000 cash payment to a vendor.

Located 53km east of Ear Falls and adjacent to Collective Metals’ Landings Lake property, the Whitemud property comprises 381 single-cell mining claims covering a total area of 7,775ha.

Collective Metals CEO Christopher Huggins said: “The Whitemud Project is a strategic addition to our Lithium portfolio, as it neighbours our Landing Lake Project and expands our presence in north-western Ontario.

“To date, the project has been underexplored and we look forward to beginning work on the property soon as possible, as our team believes the project shows great promise and north-western Ontario has shown it is emerging as a potential lithium hub.

“We look forward to advancing both projects and now believe we have solidified our battery metals portfolio with our copper and lithium projects.”